Investing.com - The Australian dollar is trading higher against
its U.S. rival in Thursday's Asian session following the release of
a pair of tepid economic data points from down under.
In Asian trading Thursday, AUD/USD is higher by 0.43% at 1.0278
having bounced off two-and-a-half month lows seen during
Wednesday's U.S. session. The pair was likely to find support at
1.0185, the low of October 10 and resistance at 1.0268, the high of
Earlier today, the Reserve Bank of Australia said that Australian
private sector credit increased by 0.2% in January after a 0.4%
increase in December. Analysts expected a January rise of 0.3%.
In another report, the Australian Bureau of Statistics said that
Australian private new capital expenditure fell to a seasonally
adjusted rate of -1.2% in the fourth quarter from 1.1% in third
quarter. The third-quarter reading was revised down from 2.8%.
Analysts expected a fourth-quarter increase of 1%.
Still, some market participants said the spending report was not
bad enough to spur RBA to cut interest rates at its meeting next
week. In recent days, various RBA members have made comments
implying that another interest rate cut and intervention in the
currency markets are unlikely near-term scenarios.
Despite those comments, RBA released data earlier today that showed
the Aussie was overvalued by as much as 15% late last year. In the
research, RBA did not the strong dollar was not facilitating
serious contraction in the world's 12th-largest economy.
Meanwhile, RBA said as many as 34 global central banks hold
Australian dollars with new additions to that list possibly
including China, France, India, South Korea, Thailand and South
Africa. The Aussie has been the best-performing developed market
currency against the greenback since 2008.
Elsewhere, AUD/JPY jumped 0.57% to 94.93 while EUR/AUD fell 0.35%
to 1.2791. AUD/NZD rose 0.03% to 1.2364.
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