Investing.com - The Australian dollar dropped to a five-week low against its U.S. counterpart on Friday, after upbeat U.S. nonfarm payrolls data fuelled expectations that the Federal Reserve will scale back stimulus measures sooner-than-expected.
AUD/USD hit 0.9353 on Friday, the pair’s lowest since October 2; the pair subsequently consolidated at 0.9382 by close of trade on Friday, down 0.76% on the day and 0.57% lower for the week.
The pair is likely to find support at 0.9334, the low from October 2 and resistance at 0.9526, the high from November 7.
The dollar was boosted after the Department of Labor said the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists.
September's figure was revised up to 163,000 from a previously reported 148,000. The unemployment rate ticked up to 7.3% from an almost five-year low of 7.2% the previous month.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.
The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as next month.
Comments by the Reserve Bank of Australia also weighed.
In its monetary policy statement report released Friday, the central bank forecast below-trend growth and rising unemployment in 2014, signaling the possibility for further rate cuts in the future.
On Tuesday, the RBA left interest rates unchanged at 2.5% and said a weaker currency will be needed to support growth.
The Aussie remained supported after Chinese trade data on Friday showed that both imports and exports rose in October, easing concerns over a slowdown in the world’s second-largest economy.
China's exports rose 5.6% in October from a year earlier while imports increased 7.6%, resulting in a USD31.1 billion trade surplus.
Data released over the weekend showed that Chinese industrial output rose more-than-forecast in October, while consumer price inflation inched up modestly.
Industrial production in China rose 10.3% last month, beating expectations for a 10.0% increase, while CPI inched up to 3.2% from 3.1% in September, missing estimates for 3.3% inflation.
China is Australia’s largest export partner.
In the week ahead, investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 11
Australia is to produce data on home loan approvals.
Tuesday, November 12
Australia is to publish a private sector report on business confidence.
Wednesday, November 13
Australia is to release a private sector report on consumer sentiment, as well as official data on the wage price index.
Thursday, November 14
Australia is to produce reports on inflation expectations and new vehicle sales.
The U.S. is to release official data on the trade balance, the difference in value between imports and exports and the weekly report on initial jobless claims.
Friday, November 15
The U.S. is to round up the week with data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.
AUD/USD hit 0.9353 on Friday, the pair’s lowest since October 2; the pair subsequently consolidated at 0.9382 by close of trade on Friday, down 0.76% on the day and 0.57% lower for the week.
The pair is likely to find support at 0.9334, the low from October 2 and resistance at 0.9526, the high from November 7.
The dollar was boosted after the Department of Labor said the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists.
September's figure was revised up to 163,000 from a previously reported 148,000. The unemployment rate ticked up to 7.3% from an almost five-year low of 7.2% the previous month.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.
The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as next month.
Comments by the Reserve Bank of Australia also weighed.
In its monetary policy statement report released Friday, the central bank forecast below-trend growth and rising unemployment in 2014, signaling the possibility for further rate cuts in the future.
On Tuesday, the RBA left interest rates unchanged at 2.5% and said a weaker currency will be needed to support growth.
The Aussie remained supported after Chinese trade data on Friday showed that both imports and exports rose in October, easing concerns over a slowdown in the world’s second-largest economy.
China's exports rose 5.6% in October from a year earlier while imports increased 7.6%, resulting in a USD31.1 billion trade surplus.
Data released over the weekend showed that Chinese industrial output rose more-than-forecast in October, while consumer price inflation inched up modestly.
Industrial production in China rose 10.3% last month, beating expectations for a 10.0% increase, while CPI inched up to 3.2% from 3.1% in September, missing estimates for 3.3% inflation.
China is Australia’s largest export partner.
In the week ahead, investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 11
Australia is to produce data on home loan approvals.
Tuesday, November 12
Australia is to publish a private sector report on business confidence.
Wednesday, November 13
Australia is to release a private sector report on consumer sentiment, as well as official data on the wage price index.
Thursday, November 14
Australia is to produce reports on inflation expectations and new vehicle sales.
The U.S. is to release official data on the trade balance, the difference in value between imports and exports and the weekly report on initial jobless claims.
Friday, November 15
The U.S. is to round up the week with data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.