Investing.com - The Australian dollar rose to a six-month high against its U.S. counterpart on Friday, after positive U.S. employment data boosted demand for riskier assets.
AUD/USD hit 1.0793 on Friday, the pair’s highest since August 2; the pair subsequently consolidated at 1.0767 by close of trade on Friday, climbing 1.20% over the week.
The pair was likely to find support at 1.0654, the low of October 28 and resistance at 1.0876, the high of July 25.
The U.S. Department of Labor said nonfarm payrolls rose by 243,000 last month, the fastest increase in nine months, after a revised 203,000 gain in December. Economists had expected the U.S. economy to add 150,000 jobs in January. The unemployment rate unexpectedly declined to a three-year low of 8.3%.
A separate report showing a greater-than-expected expansion in the U.S. service sector in January also boosted the greenback.
The robust data dampened expectations for a new round of quantitative easing by the Federal Reserve.
In testimony to the House Budget Committee in Washington on Thursday Fed Chairman Ben Bernanke said the economy has shown “signs of improvement” but warned that the outlook remained “uncertain”.
Meanwhile, the Australian Industry Group said on Friday that its services index rose to 51.9 in January from a reading at 49.0 the previous month.
On the index, a reading above 50 indicates expansion and below indicates contraction.
On Thursday, official data showed that Australia’s trade surplus rose unexpectedly to AUD1.71 billion in December from a surplus of AUD1.34 billion the previous month. Analysts had expected Australia’s trade surplus to narrow to AUD1.22 billion in December.
Elsewhere, market sentiment remained under pressure amid concerns over delays in negotiations on a debt restructuring deal for Greece persisted, despite assurances from European officials that a deal is close to being finalized.
Greece needs to secure an agreement with its private creditors on a debt swap deal in order to receive its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
In the week ahead, investors will be watching developments in the euro zone, with European leaders holding a string of meetings to discuss Greece’s bailout and the financial guarantees for the European Financial Stability Facility, the euro zone’s new bailout fund.
Meanwhile, the European Central Bank is to hold its policy setting meeting, but the bank is widely expected to keep rates on hold at 1%.
In the U.S., Fed Chairman Ben Bernanke is to testify before the Senate budget committee in Washington.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 6
Australia is to produce official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The country is also to release industry data on job advertisements.
Tuesday, February 7
The Reserve Bank of Australia is to announce its benchmark interest rate, followed by the bank’s rate statement.
In the U.S., Fed Chairman Ben Bernanke is due to testify on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.
Wednesday, February 8
Australia is to release industry data on consumer sentiment, a leading indicator of consumer spending.
The U.S. is to publish a government report on crude oil inventories.
Thursday, February 9
The U.S. is to publish government data on unemployment claims, an important signal of overall economic health.
Friday, February 10
The RBA is to release its monetary policy statement, which will be closely watched as it provides valuable insight into the bank's view of economic conditions and inflation.
The U.S. is to round up the week with official data on the country’s trade balance, as well as preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Later in the day, Fed Chairman Ben Bernanke is due to speak about the housing market at the 2012 National Association of Homebuilders International Builders show.
AUD/USD hit 1.0793 on Friday, the pair’s highest since August 2; the pair subsequently consolidated at 1.0767 by close of trade on Friday, climbing 1.20% over the week.
The pair was likely to find support at 1.0654, the low of October 28 and resistance at 1.0876, the high of July 25.
The U.S. Department of Labor said nonfarm payrolls rose by 243,000 last month, the fastest increase in nine months, after a revised 203,000 gain in December. Economists had expected the U.S. economy to add 150,000 jobs in January. The unemployment rate unexpectedly declined to a three-year low of 8.3%.
A separate report showing a greater-than-expected expansion in the U.S. service sector in January also boosted the greenback.
The robust data dampened expectations for a new round of quantitative easing by the Federal Reserve.
In testimony to the House Budget Committee in Washington on Thursday Fed Chairman Ben Bernanke said the economy has shown “signs of improvement” but warned that the outlook remained “uncertain”.
Meanwhile, the Australian Industry Group said on Friday that its services index rose to 51.9 in January from a reading at 49.0 the previous month.
On the index, a reading above 50 indicates expansion and below indicates contraction.
On Thursday, official data showed that Australia’s trade surplus rose unexpectedly to AUD1.71 billion in December from a surplus of AUD1.34 billion the previous month. Analysts had expected Australia’s trade surplus to narrow to AUD1.22 billion in December.
Elsewhere, market sentiment remained under pressure amid concerns over delays in negotiations on a debt restructuring deal for Greece persisted, despite assurances from European officials that a deal is close to being finalized.
Greece needs to secure an agreement with its private creditors on a debt swap deal in order to receive its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
In the week ahead, investors will be watching developments in the euro zone, with European leaders holding a string of meetings to discuss Greece’s bailout and the financial guarantees for the European Financial Stability Facility, the euro zone’s new bailout fund.
Meanwhile, the European Central Bank is to hold its policy setting meeting, but the bank is widely expected to keep rates on hold at 1%.
In the U.S., Fed Chairman Ben Bernanke is to testify before the Senate budget committee in Washington.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 6
Australia is to produce official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The country is also to release industry data on job advertisements.
Tuesday, February 7
The Reserve Bank of Australia is to announce its benchmark interest rate, followed by the bank’s rate statement.
In the U.S., Fed Chairman Ben Bernanke is due to testify on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.
Wednesday, February 8
Australia is to release industry data on consumer sentiment, a leading indicator of consumer spending.
The U.S. is to publish a government report on crude oil inventories.
Thursday, February 9
The U.S. is to publish government data on unemployment claims, an important signal of overall economic health.
Friday, February 10
The RBA is to release its monetary policy statement, which will be closely watched as it provides valuable insight into the bank's view of economic conditions and inflation.
The U.S. is to round up the week with official data on the country’s trade balance, as well as preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Later in the day, Fed Chairman Ben Bernanke is due to speak about the housing market at the 2012 National Association of Homebuilders International Builders show.