Investing.com - The Australian dollar rose to a more than two month high against its U.S. counterpart on Friday, after better-than-expected Australian import prices data while investors eyed a third day of Greece bailout talks.
AUD/USD hit 1.0487 on Friday, the pair’s highest since November 1; the pair subsequently consolidated at 1.0482 by close of trade on Friday, adding 1.87% over the week.
The pair is likely to find support at 1.0358, the low of January 18 and resistance at 1.0565, the high of November 1.
Official data showed on Friday that import prices in Australia rose more-than-expected in the fourth quarter, climbing 2.5% after a flat reading the previous quarter. Analysts had expected import prices to rise 0.9% in the fourth quarter.
In the U.S., industry data showed that existing home sales in the U.S. rose less-than-expected in December, advancing to 4.61 million after a rise to 4.39 million the previous month.
Analysts had expected existing home sales to rise to 4.65 million in December.
Meanwhile, officials said that Greece was nearing an agreement with creditors on a debt restructuring deal, aimed at erasing EUR100 billion of the country’s EUR360 billion debt burden and securing another tranche of international aid.
The risk-related Aussie found support earlier in the week as successful government debt auctions by Spain and France eased concerns that borrowing costs for euro zone countries would rise, after ratings downgrades on the countries by Standard & Poor's earlier in the month.
Spain sold EUR6.61 billion of medium to long-term debt at broadly lower yields, exceeding the maximum target of EUR4.5 billion set for the auction, while France auctioned EUR7.97 billion of medium and long-term securities.
Sentiment was also boosted after the International Monetary Fund said it wanted to increase its lending capacity by as much as USD500 billion, having identified a potential need for USD1 trillion in coming years.
The Australian dollar edged lower against the greenback on Thursday after official data showed that Australian employment change fell by 29,300 in December, confounding expectations for a gain of 10,000.
The report also showed that Australia’s unemployment rate held steady at 5.2%.
In the U.S., the Department of Labor said the number of people who filed for unemployment assistance in the week ending January 13 declined unexpectedly, falling to the lowest level in almost four years.
The number of individuals filing for initial jobless benefits fell to 352,000 from 402,000 the previous week, surpassing expectations for a fall to 385,000.
Separate reports showed that U.S. consumer price inflation was flat in December, while U.S. housing starts dropped 4.1% to a 657,000 annual rate last month.
In the coming week, investors will be eyeing developments in the euro zone, with finance ministers from the single currency bloc meeting in Brussels on Monday, with Greece’s debt restructuring deal likely to be at the top of the agenda.
Markets will also be closely watching the outcome of Thursday’s Federal Reserve policy setting meeting, as well as Friday’s preliminary data on U.S. fourth-quarter gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 23
Australia is to produce official data on producer price inflation, a leading indicator of consumer inflation.
Tuesday, January 24
Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Wednesday, January 25
Australia is to publish official data on consumer price inflation, which accounts for a majority of overall inflation, as well as an index of leading economic indicators.
The U.S. is to release industry data on pending home sales, a leading indicator of demand in the housing market, as well as official data on crude oil stockpiles. The Federal Reserve is to announce the federal funds rate and publish its official rate statement.
Elsewhere, the World Economic Forum is to begin its five-day annual meeting in Davos in Switzerland.
Thursday, January 26
Markets in Australia will remain closed due to a national holiday.
In the U.S., official data is to be produced on durable goods, an important indicator of production, as well as on unemployment claims and new home sales, a key gauge of economic health.
Friday, January 27
The U.S. is to round up the week with preliminary data on the country’s fourth quarter GDP and GDP price index, followed by a revised data from the University of Michigan on consumer sentiment and inflation expectations.
AUD/USD hit 1.0487 on Friday, the pair’s highest since November 1; the pair subsequently consolidated at 1.0482 by close of trade on Friday, adding 1.87% over the week.
The pair is likely to find support at 1.0358, the low of January 18 and resistance at 1.0565, the high of November 1.
Official data showed on Friday that import prices in Australia rose more-than-expected in the fourth quarter, climbing 2.5% after a flat reading the previous quarter. Analysts had expected import prices to rise 0.9% in the fourth quarter.
In the U.S., industry data showed that existing home sales in the U.S. rose less-than-expected in December, advancing to 4.61 million after a rise to 4.39 million the previous month.
Analysts had expected existing home sales to rise to 4.65 million in December.
Meanwhile, officials said that Greece was nearing an agreement with creditors on a debt restructuring deal, aimed at erasing EUR100 billion of the country’s EUR360 billion debt burden and securing another tranche of international aid.
The risk-related Aussie found support earlier in the week as successful government debt auctions by Spain and France eased concerns that borrowing costs for euro zone countries would rise, after ratings downgrades on the countries by Standard & Poor's earlier in the month.
Spain sold EUR6.61 billion of medium to long-term debt at broadly lower yields, exceeding the maximum target of EUR4.5 billion set for the auction, while France auctioned EUR7.97 billion of medium and long-term securities.
Sentiment was also boosted after the International Monetary Fund said it wanted to increase its lending capacity by as much as USD500 billion, having identified a potential need for USD1 trillion in coming years.
The Australian dollar edged lower against the greenback on Thursday after official data showed that Australian employment change fell by 29,300 in December, confounding expectations for a gain of 10,000.
The report also showed that Australia’s unemployment rate held steady at 5.2%.
In the U.S., the Department of Labor said the number of people who filed for unemployment assistance in the week ending January 13 declined unexpectedly, falling to the lowest level in almost four years.
The number of individuals filing for initial jobless benefits fell to 352,000 from 402,000 the previous week, surpassing expectations for a fall to 385,000.
Separate reports showed that U.S. consumer price inflation was flat in December, while U.S. housing starts dropped 4.1% to a 657,000 annual rate last month.
In the coming week, investors will be eyeing developments in the euro zone, with finance ministers from the single currency bloc meeting in Brussels on Monday, with Greece’s debt restructuring deal likely to be at the top of the agenda.
Markets will also be closely watching the outcome of Thursday’s Federal Reserve policy setting meeting, as well as Friday’s preliminary data on U.S. fourth-quarter gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 23
Australia is to produce official data on producer price inflation, a leading indicator of consumer inflation.
Tuesday, January 24
Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy.
Wednesday, January 25
Australia is to publish official data on consumer price inflation, which accounts for a majority of overall inflation, as well as an index of leading economic indicators.
The U.S. is to release industry data on pending home sales, a leading indicator of demand in the housing market, as well as official data on crude oil stockpiles. The Federal Reserve is to announce the federal funds rate and publish its official rate statement.
Elsewhere, the World Economic Forum is to begin its five-day annual meeting in Davos in Switzerland.
Thursday, January 26
Markets in Australia will remain closed due to a national holiday.
In the U.S., official data is to be produced on durable goods, an important indicator of production, as well as on unemployment claims and new home sales, a key gauge of economic health.
Friday, January 27
The U.S. is to round up the week with preliminary data on the country’s fourth quarter GDP and GDP price index, followed by a revised data from the University of Michigan on consumer sentiment and inflation expectations.