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Forex - AUD/USD edges up, near 1-month highs

Published 06/12/2014, 03:04 AM
Aussie edges up vs. greenback despite jobs data
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar edged up against its U.S. counterpart on Thursday, hovering near one-month highs even as data showed that the number of employed people in Australia dropped unexpectedly last month.

AUD/USD hit 0.9412 during late Asian trade, the session high; the pair subsequently consolidated at 0.9396, adding 0.15%.

The pair was likely to find support at 0.9319, the low of June 6 and resistance at 0.9461, the high of April 10 and a four-and-a-half month high.

Official data showed that the number of employed people in Australia declined by 4,800 in May, compared to expectations for a 10,000 rise. April's figure was revised down to a 10,300 increase from a previously estimated 14,200 rise.

Australia's unemployment rate remained unchanged at 5.8% last month, confounding expectations for an uptick to 5.9%.

Separately, the Melbourne Institute said inflation expectations for the next 12 months in Australia slipped to 4.0% in May, from 4.4% the previous month.

Meanwhile, market participants were looking ahead U.S. data on jobless claims and retail sales later in the trading day, after recent economic reports have indicated that the economy is shaking off the effects of the severe winter.

The Aussie was sharply lower against the New Zealand dollar, with AUD/NZD plummeting 1.27% to 1.0843.

The kiwi strengthened broadly after the Reserve Bank of New Zealand raised its benchmark interest rate to 3.25% from 3.00% and suggested that borrowing costs could rise again this year.

Commenting on the decision, RBNZ Governor Graeme Wheeler said "it is important that inflation expectations remain contained and that interest rates return to a more neutral level."

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