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Forex - AUD/USD higher despite wider Aussie trade deficit

Posted
3/6/2013 10:54:00 PM
By: Investing.com
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Investing.com - The Australian dollar rose slightly against its U.S. counterpart during Thursday's Asian session despite news of a wider-than-expected Australian trade deficit in January.

In Asian trading Thursday, AUD/USD rose 0.03% to 1.0239, indicating the pair has fallen through support at 1.0249, the low of February 25. The pair should find and resistance at 1.0329, the high of February 25.

A report released earlier today showed the nation's trade deficit widened more than economists expected. The country's trade deficit widened to AUD1.06 billion in January from AUD688 million in December. Economists expected a January deficit of AUD500 million.

The trade deficit news comes on the heels of what has been a busy week for the Aussie. On Wednesday, official data showed that Australia's GDP rose 0.6% in the fourth quarter, in line with expectations. The rate of expansion in the third quarter GDP was revised up to 0.7% from 0.5%.

Earlier in the week, the Reserve Bank of Australia opted to leave interest rates unchanged at 3%, a move that was widely expected.

The Australian Bureau of Agricultural and Resource Economics and Sciences said it expects AUD/USD to average 1.04 over the next year, citing Australia's solid economy. ABARES forecast GDP growth of 2.8% over the 2013-2014 time frame.

The group said mining investment will remain slack, but consumer spending and commodities exports should help support the world's 12th-largest economy.

Traders will now turn their attention to monetary policy commentary from the Bank of Japan, Bank of England and the European Central Bank due out later today.

Meanwhile, EUR/AUD rose 0.08% to 1.2683 while GBP/AUD fell 0.21% to 1.4643. AUD/JPY declined 0.04% to 96.28. AUD/NZD rose 0.18% to 1.2378.


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