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Forex - AUD/USD climbs as Fed speculation persists

Published 08/15/2013, 03:00 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar climbed higher against its U.S. counterpart on Thursday, as demand for the greenback came under pressure amid renewed uncertainty over the future of the Federal Reserve's stimulus program.

AUD/USD hit 0.9183 during late Asian trade, the pair's highest since August 12; the pair subsequently consolidated at 0.9176, advancing 0.59%.

The pair was likely to find support at 0.9074, the low of August 13 and resistance at 0.9287, the high of July 29.

The greenback remained under pressure after data on Wednesday showed that U.S. producer price inflation was flat in July, while core inflation rose less-than-forecast.

The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin unwinding its USD85 billion-a-month asset purchase program later this year.

In Australia, the Melbourne Institute said inflation expectations ticked down to 2.3% in July, from 2.6% the previous month.

The Aussie was fractionally lower against the New Zealand dollar with AUD/NZD easing 0.09%, to hit 1.1353.

Also Thursday, data showed that the Business New Zealand Manufacturing Index rose to 59.5 in July, from a reading of 54.7 the previous month.

Later in the day, the U.S. was to release reports on consumer inflation, jobless claims, industrial production and manufacturing data from the Empire state and the Philly Fed.


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