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Forex – AUD/USD climbs ahead of Aussie inflation data

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Investing.com - The Australian dollar rose modestly against its U.S. rival during Monday's Asian session as traders await Australian inflation data due out later this week.

In Asian trading Monday, AUD/USD climbed 0.07% to 1.0519 after losing 0.21% last week. The pair is likely to find support at 1.0484, Friday's low and resistance at 1.0575, Thursday's high.

AUD/USD languished last week on the heels of some slack Australian employment data. Official data showed that the Australian economy cut 5,500 jobs in December, disappointing expectations for a 4,500 rise, after a 17,100 increase the previous month.

Australia's unemployment rate ticked up to 5.4% last month from 5.3% in November, in line with expectations.

The Aussie dollar will be in focus leading up to Wednesday's inflation report. Economists are expecting a 0.7% increase in fourth-quarter core consumer prices, but a reading of 0.6% or lower could trigger added speculation that the Reserve Bank of Australia could initiate at another interest rate following its next meeting.

RBA's benchmark interest rate is currently 3%. Australia's central bank is scheduled to hold its next meeting on February 5th.

Elsewhere, AUD/JPY plunged 0.48% to 94.23 after Koichi Hamada, who is helping Prime Minister Abe select a new Bank of Japan governor, said Japan must guard against allowing the yen to depreciate too quickly against other major currencies.

The Bank of Japan started a two-day meeting today and traders are saying that if the central bank disappoints on the monetary easing front, the yen could catch a bid at the expense of riskier currencies such as the Aussie dollar.

Meanwhile, EUR/AUD slipped 0.05% to 1.2664 while GBP/AUD fell 0.16% to 1.5084. NZD/USD dropped 0.06% to 0.8358. The pair is likely to find support at 0.8325, Thursday's low and resistance at 0.8425, Thursday's high.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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