Investing.com - The Australian dollar declined against its U.S. counterpart on Friday, paring some of the week’s gains but market sentiment remained supported by new hopes of progress in Greece debt talks.
AUD/USD hit 1.0798 on Friday, the pair’s highest since February 9; the pair subsequently consolidated at 1.0704 by close of trade on Friday, edging up 0.14% over the week.
The pair is likely to find support at 1.0628, the low of February 14 and resistance at 1.0823, the high of February 9.
The Aussie rose to a six-day high against the greenback on Friday after German Chancellor Angela Merkel and Greek Prime Minister Lucas Papademos expressed optimism that an agreement would be reached at Monday's meeting of euro zone finance ministers.
However, investors remained cautious as European officials warned that that there was still a long way to go in order for Greece to meet the target for its debt burden which would allow the EUR130 billion bailout to proceed.
Meanwhile, the U.S. dollar was boosted by a string of upbeat U.S.
economic data. On Thursday, the U.S. Department of Labor said initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
In a separate report, the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Data also showed that an index of manufacturing activity in the Philadelphia area rose more-than-expected in February, advancing to 10.2, above expectations for a rise to 9.0.
In addition, U.S. core producer price inflation rose more-than-expected in January, ticking up 0.4% after a 0.3% rise the previous month. Analysts had expected core PPI to rise 0.1% in January.
On Friday, the U.S. Conference Board said that its index of leading economic indicators increased for the fourth consecutive month in January.
In Australia, official data showed on Thursday that the economy added 46,300 jobs in January after a 35,600 drop the previous month. Analysts had expected employment change to rise by 10,500 in January.
The report also showed that the unemployment rate in Australia ticked down to 5.1% from 5.2% in December, confounding expectations for a rise to 5.3%.
The data came after a report by the Melbourne Institute showed that inflation expectations in Australia declined to 2.5% in January from 2.8% the previous month.
In the week ahead, markets will be keenly awaiting the outcome of Monday’s meeting of euro zone finance ministers, while markets in the U.S. will be closed for the Presidents Day holiday.
Also next week, the euro zone is to produce closely watched preliminary data on manufacturing a service sector activity, while the U.S. is to release a flurry of housing sector data.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 20
Markets in the U.S. will remain closed for the Presidents Day holiday.
Tuesday, February 21
The Reserve Bank of Australia is to release the minutes of its January policy setting meeting, followed by a speech by RBA Chairman Glenn Stevens.
Wednesday, February 22
Australia is to produce leading index reports both by the Conference Board and the Melbourne Institute, as well as official data on wage price inflation, a leading indicator of consumer inflation.
Also Wednesday, the U.S. is to release industry data on existing home sales, a leading indicator of demand in the housing market, followed by official data on crude oil stockpiles.
Thursday, February 23
The U.S. is to release government data on unemployment claims, an important signal of overall economic health.
Meanwhile, finance ministers and central bankers are to meet throughout the day for the seventh G20 meeting, in Mexico.
Friday, February 24
RBA Governor Stevens is to testify before the House of Representatives Standing Committee on Economics, in Sydney.
The U.S. is to round up the week with a revised report by the University of Michigan on consumer sentiment, followed by government data on new home sales, an important signal of economic health.
AUD/USD hit 1.0798 on Friday, the pair’s highest since February 9; the pair subsequently consolidated at 1.0704 by close of trade on Friday, edging up 0.14% over the week.
The pair is likely to find support at 1.0628, the low of February 14 and resistance at 1.0823, the high of February 9.
The Aussie rose to a six-day high against the greenback on Friday after German Chancellor Angela Merkel and Greek Prime Minister Lucas Papademos expressed optimism that an agreement would be reached at Monday's meeting of euro zone finance ministers.
However, investors remained cautious as European officials warned that that there was still a long way to go in order for Greece to meet the target for its debt burden which would allow the EUR130 billion bailout to proceed.
Meanwhile, the U.S. dollar was boosted by a string of upbeat U.S.
economic data. On Thursday, the U.S. Department of Labor said initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
In a separate report, the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Data also showed that an index of manufacturing activity in the Philadelphia area rose more-than-expected in February, advancing to 10.2, above expectations for a rise to 9.0.
In addition, U.S. core producer price inflation rose more-than-expected in January, ticking up 0.4% after a 0.3% rise the previous month. Analysts had expected core PPI to rise 0.1% in January.
On Friday, the U.S. Conference Board said that its index of leading economic indicators increased for the fourth consecutive month in January.
In Australia, official data showed on Thursday that the economy added 46,300 jobs in January after a 35,600 drop the previous month. Analysts had expected employment change to rise by 10,500 in January.
The report also showed that the unemployment rate in Australia ticked down to 5.1% from 5.2% in December, confounding expectations for a rise to 5.3%.
The data came after a report by the Melbourne Institute showed that inflation expectations in Australia declined to 2.5% in January from 2.8% the previous month.
In the week ahead, markets will be keenly awaiting the outcome of Monday’s meeting of euro zone finance ministers, while markets in the U.S. will be closed for the Presidents Day holiday.
Also next week, the euro zone is to produce closely watched preliminary data on manufacturing a service sector activity, while the U.S. is to release a flurry of housing sector data.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 20
Markets in the U.S. will remain closed for the Presidents Day holiday.
Tuesday, February 21
The Reserve Bank of Australia is to release the minutes of its January policy setting meeting, followed by a speech by RBA Chairman Glenn Stevens.
Wednesday, February 22
Australia is to produce leading index reports both by the Conference Board and the Melbourne Institute, as well as official data on wage price inflation, a leading indicator of consumer inflation.
Also Wednesday, the U.S. is to release industry data on existing home sales, a leading indicator of demand in the housing market, followed by official data on crude oil stockpiles.
Thursday, February 23
The U.S. is to release government data on unemployment claims, an important signal of overall economic health.
Meanwhile, finance ministers and central bankers are to meet throughout the day for the seventh G20 meeting, in Mexico.
Friday, February 24
RBA Governor Stevens is to testify before the House of Representatives Standing Committee on Economics, in Sydney.
The U.S. is to round up the week with a revised report by the University of Michigan on consumer sentiment, followed by government data on new home sales, an important signal of economic health.