Investing.com - The Australian dollar ended Friday’s session at a three-week low against its U.S. counterpart, as heightened tensions between Russia and Ukraine dampened demand for riskier assets.
AUD/USD fell to 0.9252 on Thursday, the pair’s lowest since April 4, before subsequently consolidating at 0.9269 by close of trade on Friday, up 0.06% for the day but 0.68% lower for the week.
The pair is likely to find support at 0.9230, the low from April 4 and resistance at 0.9301, the high from April 24.
Concerns over the conflict between Russian and Ukraine escalated on Friday after U.S. Secretary of State John Kerry warned that Washington was ready to step up economic sanctions against Russia.
Meanwhile, ratings agency Standard & Poor’s cut its rating on Russia on Friday, citing the potential for “additional significant outflows” of capital due to escalating hostilities with Ukraine.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Market players also continued to monitor U.S. data for further indications on the strength of the economy and the future course of monetary policy.
Data on Friday showed that consumer confidence rose to a nine-month high in April, adding to signs that the economy is improving.
The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6. Analysts had expected the index to rise to 83.0.
Elsewhere, in Australia, data released earlier in the week showed that consumer price inflation in Australia rose 0.6% in the first quarter, below expectations for a 0.8% increase, after a 0.8% rise in the three months to December.
Data from the Commodities Futures Trading Commission released Friday showed that speculators increased their bullish bets on the Australian dollar in the week ending April 22.
Net longs totaled 16,370 contracts, compared to net longs of 8,097 in the preceding week.
In the week ahead, investors will be looking ahead to Wednesday’s monetary policy announcement by the Federal Reserve amid speculation the central bank is likely to continue to scale back its stimulus program.
The U.S. will also release the monthly non-farm payrolls report for April later in the week as well as a preliminary estimate on first quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 28
The U.S. is to release private sector data on pending home sales.
Tuesday, April 29
The U.S. is to a report compiled by the Conference Board on consumer confidence.
Wednesday, April 30
The U.S. is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on manufacturing activity in the Chicago region.
Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, May 1
China is to release official data on manufacturing activity. The Asian nation is Australia’s biggest trade partner.
The U.S. is to publish the weekly report on initial jobless claims. At the same time, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.
Later Thursday, the Institute of Supply Management is to release a report on manufacturing activity.
Friday, May 2
Australia is to release data on producer price inflation.
The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate, and a separate report on factory orders.