Forex - AUD/USD rises on trade balance data
Investing.com - The Australian dollar is trading slightly higher
against its U.S. rival during Wednesday's Asian session following
the release of February trade balance data.
In Asian trading Wednesday, AUD/USD is higher by 0.03% at 1.0454. The pair was likely to find support at 1.0418, the low of March 27 and resistance at 1.0497, the high of March 26 and a two-month high.
Earlier today, the Australian Bureau of Statistics said that Australia's trade balance narrowed to AUD178 million in February from a AUD1.215 billion deficit in the previous month. Economists expected a deficit of AUD1 billion.
While some economists expect Australian exports to increase throughout the remainder of the year, it is also widely expected that prices will continue to fall, keeping the Australian trade deficit in the red.
In other news related to Australian trade, China's official purchasing managers' index (PMI) for the services sector climbed to 55.6 in March from 54.5 in February. Readings above 50 indicate expansion. The bullish number was helped by increased construction activity.
China's National Bureau of Statistics said the construction index jumped 4.5 points from February to 62.5 in March. China is the largest trading partner for both Australia and New Zealand.
The Aussie was also supported by the Reserve Bank of Australia opting to leave interest rates unchanged at 3% following its meeting on Tuesday.
Commenting on the decision, RBA Governor Glenn Stevens said that "there are a number of indications that the substantial easing of monetary policy during late 2011 and 2012 is having an expansionary effect".
Elsewhere, AUD/JPY is up 0.24% at 97.87 while EUR/AUD is lower by 0.16% at 1.2248.
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