Invesgting.com - The Australian dollar traded lower against its U.S. rival in Monday’s Asian session as traders scampered out of the Aussie due to last Friday’s encouraging U.S. jobs report.
In Asian trading Monday, AUD/USD lost 0.14% to 0.9049 after losing 0.91% last Friday to finish the week lower by 0.95%. The pair is likely to find near-term support at 0.9034, Wednesday’s low and a 34-month low and resistance at 0.9179, Friday’s session high.
The U.S. Labor Department said the world’s largest economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised up to 199,000 from 149,000.
The U.S. unemployment rate remained at 7.6%, well above the 6.5% area the Federal Reserve has said is necessary before it well consider raising interest rates.
While interest rate increases from the Fed may not be imminent, the improving jobs picture in the world’s largest economy could give the Fed room to begin tapering its USD85 billion-a-month bond-buying program and some traders are already speculating tapering could commence as soon as September.
The Aussie, one of the so-called riskier currencies, has proven vulnerable to tapering talk. Fears the Fed could unwind its asset-buying program have made the Aussie the second-worst developed market currency in the world this year behind only the yen.
The Aussie has proven to be one of the most vulnerable currencies to tapering chatter and that vulnerability has some traders thinking the Australian dollar could breach 90 cents in a matter of days, a level the currency has not seen since 2010.
Elsewhere, AUD/JPY fell 0.19% to 91.53 while AUD/NZD dropped 0.17% to 1.1738.
In Asian trading Monday, AUD/USD lost 0.14% to 0.9049 after losing 0.91% last Friday to finish the week lower by 0.95%. The pair is likely to find near-term support at 0.9034, Wednesday’s low and a 34-month low and resistance at 0.9179, Friday’s session high.
The U.S. Labor Department said the world’s largest economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised up to 199,000 from 149,000.
The U.S. unemployment rate remained at 7.6%, well above the 6.5% area the Federal Reserve has said is necessary before it well consider raising interest rates.
While interest rate increases from the Fed may not be imminent, the improving jobs picture in the world’s largest economy could give the Fed room to begin tapering its USD85 billion-a-month bond-buying program and some traders are already speculating tapering could commence as soon as September.
The Aussie, one of the so-called riskier currencies, has proven vulnerable to tapering talk. Fears the Fed could unwind its asset-buying program have made the Aussie the second-worst developed market currency in the world this year behind only the yen.
The Aussie has proven to be one of the most vulnerable currencies to tapering chatter and that vulnerability has some traders thinking the Australian dollar could breach 90 cents in a matter of days, a level the currency has not seen since 2010.
Elsewhere, AUD/JPY fell 0.19% to 91.53 while AUD/NZD dropped 0.17% to 1.1738.