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Forex - AUD/USD rises on positive Australian data

Published 11/05/2012, 02:54 AM
Updated 11/05/2012, 02:55 AM
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Investing.com - The Australian dollar was higher against its U.S. counterpart on Monday, after the release of positive economic data from Australia, although the greenback remained supported after upbeat U.S. employment data and uncertainty ahead of the upcoming U.S. presidential elections.

AUD/USD hit 1.0370 during European morning trade, the daily high; the pair subsequently consolidated at 1.0358, adding 0.18%.

The pair was likely to find support at 1.0306, the low of October 26 and resistance at 1.0399, the high of October 31.

Official data earlier showed that Australia's trade deficit narrowed more-than-expected in September, improving to AUD1.46 billion from a deficit of AUD1.88 billion the previous month.

Analysts had expected the trade deficit to narrow to AUD1.65 billion in September.

A separate report showed that retail sales in Australia rose by 0.5% last month, more than the expected 0.4% increase, after a 0.3% rise in August.

Meanwhile, the greenback remained supported after the U.S. Department of Labor on Friday said the economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.

The U.S. dollar also found support amid uncertainty over the outcome of Tuesday’s U.S. presidential elections, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.46%, to hit 1.2359.

Later in the day, the Institute of Supply Management was to publish data on U.S.service sector activity.


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