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Forex - AUD/USD weekly outlook: November 10 - 14

Published 11/09/2014, 09:15 AM
AUD/USD rises on Friday but still posts weekly loss
AUD/USD
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Investing.com - The Australian dollar rebounded from a more than four-year low against its U.S. counterpart on Friday, after disappointing U.S. nonfarm payrolls data prompted investors to book profits on the greenback.

AUD/USD hit a daily low of 0.8541 on Friday, the pair's lowest level since July 2010, before subsequently consolidating at 0.8633 by close of trade, up 0.9% for the day but still 1.85% lower for the week.

The pair is likely to find support at 0.8541, the low from November 7, and resistance at 0.8761, the high from November 5.

In a report, the Department of Labor said that the U.S. economy added 214,000 jobs last month, missing expectations for jobs growth of 231,000.

The U.S. unemployment rate ticked down to a fresh six-year low of 5.8% from 5.9% in September, suggesting the economy remains on a strengthening path.

While the data prompted investors to sell the greenback to lock in gains following its recent rally, it did little to alter expectations that the Federal Reserve will raise interest rates ahead of its other major peers.

Meanwhile, the Reserve Bank of Australia said in its monetary policy statement released Friday that borrowing costs will remain low for an extended period of time.

On Tuesday, the RBA held its benchmark interest rate at a record-low 2.50%, in a widely expected move.

Commenting on the decision, RBA Governor Glenn Stevens said the Australian dollar "remains above most estimates of its fundamental value."

Also last week, official data showed that retail sales in Australia rose more than expected in September, while the number of people employed in October topped forecasts.

In the week ahead, investors will be awaiting U.S. data on retail sales and consumer sentiment for fresh signals on the strength of the economic recovery.

Traders are looking ahead to a raft of Chinese economic data later this week, including reports on consumer price inflation, industrial production and retail sales figures for October.

The Asian nation is Australia's largest trade partner.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, November 10

China is to release data on producer and consumer price inflation.

Australia is to publish a report on home loans.

Tuesday, November 11

Australia is to release private sector data on business confidence, as well as official data on house price inflation.

Wednesday, November 12

Australia is to release a private sector report on consumer sentiment, as well as official data on the wage price index.

Thursday, November 13

Australia is to publish private sector data on inflation expectations.

China is to produce data on industrial production and fixed asset investment.

The U.S. is to publish the weekly report on initial jobless claims.

Friday, November 14

The U.S. is to round up the week with data on retail sales and import prices as well as preliminary data on consumer sentiment from the University of Michigan.

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