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Forex - AUD/USD trims gains after mixed U.S. economic data

Published 11/15/2010, 09:51 AM
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Investing.com – The Australian dollar trimmed gains against its U.S. counterpart on Monday, retreating from an 10-day low following the release of mixed U.S. data on retail sales and manufacturing.

AUD/USD clawed up from 0.9812, the pair’s lowest since November 1, to hit 0.9885 during European afternoon trade, shedding 0.02%.

The pair was likely to find support at 0.9715, the low of October 28 and resistance at 1.0002, last Friday’s high.

Earlier in the day, official data showed that the New York Federal Reserves index of manufacturing conditions dropped significantly more-than-expected in November, falling below zero for the first time since mid-2009.

The Federal Reserve Bank of New York said that its general business conditions index tumbled to -11.1 in November, after rising to 15.7 in October. Analysts had expected the index to decline to 11.7 in November.

On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.

Meanwhile, a separate report showed that retail sales in the U.S. rose more-than-expected in October.

Retail sales rose by a seasonally adjusted 1.2% in October, after rising by a revised 0.7% in September. Analysts had expected retail sales to increase by 0.7% in October. Core retail sales, which exclude automobile sales, rose in line with expectations.

Meanwhile, the Aussie was up against the euro, with EUR/AUD tumbling 0.83% to hit 1.3788.

Later in the day, the Reserve Bank of Australia was to publish the minutes of its November monetary policy meeting.

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