Investing.com - The Australian dollar ended Friday’s session higher against its U.S. counterpart, amid ongoing uncertainty over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases.
AUD/USD hit 0.9214 on Friday, the pair’s highest since August 12; the pair subsequently consolidated at 0.9182 by close of trade on Friday, up 0.44% on the day but down 0.17% for the week.
The pair is likely to find support at 0.9057, Thursday’s low and short-term resistance at 0.9220, the high from August 12.
The University of Michigan said Friday that its consumer sentiment index fell from a six-year high of 85.1 in July to 80.0 in August. Economists had expected the index to tick up to 85.5.
Separate reports showed that U.S. housing starts rose less-than-expected in July and building permits also fell short of expectations last month.
The data came amid ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
In the week ahead, investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched.
Manufacturing data from China and service and manufacturing data out of the euro zone will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 19
Australia is to publish data on new vehicle sales, a leading indicator of consumer confidence.
Tuesday, August 20
The Reserve Bank of Australia is to release the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
Wednesday, August 21
The U.S. is to publish private sector data on existing home sales, a leading indicator of economic health. In addition the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Thursday, August 22
Australia is to publish an index of leading economic indicators.
Elsewhere, China is to publish its closely watched HSBC manufacturing PMI. The Asian nation is Australia's biggest export partner.
Later in the day, the U.S. is to release the weekly government report on initial jobless claims.
Friday, August 23
The U.S. is to round up the week with data on new home sales, a leading indicator of economic health.
AUD/USD hit 0.9214 on Friday, the pair’s highest since August 12; the pair subsequently consolidated at 0.9182 by close of trade on Friday, up 0.44% on the day but down 0.17% for the week.
The pair is likely to find support at 0.9057, Thursday’s low and short-term resistance at 0.9220, the high from August 12.
The University of Michigan said Friday that its consumer sentiment index fell from a six-year high of 85.1 in July to 80.0 in August. Economists had expected the index to tick up to 85.5.
Separate reports showed that U.S. housing starts rose less-than-expected in July and building permits also fell short of expectations last month.
The data came amid ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
In the week ahead, investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched.
Manufacturing data from China and service and manufacturing data out of the euro zone will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 19
Australia is to publish data on new vehicle sales, a leading indicator of consumer confidence.
Tuesday, August 20
The Reserve Bank of Australia is to release the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
Wednesday, August 21
The U.S. is to publish private sector data on existing home sales, a leading indicator of economic health. In addition the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Thursday, August 22
Australia is to publish an index of leading economic indicators.
Elsewhere, China is to publish its closely watched HSBC manufacturing PMI. The Asian nation is Australia's biggest export partner.
Later in the day, the U.S. is to release the weekly government report on initial jobless claims.
Friday, August 23
The U.S. is to round up the week with data on new home sales, a leading indicator of economic health.