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Forex - AUD/USD edges higher but gains capped

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Investing.com - The Australian dollar edged higher against its U.S. counterpart on Thursday, but gains were capped by disappointing Australian trade balance data and as investors eyed the outcome of the European Central Bank's meeting amid euro zone growth concerns.

AUD/USD hit 1.0255 during late Asian trade, the session high; the pair subsequently consolidated at 1.0245, adding 0.10%.

The pair was likely to find support at 1.0193, the low of March 5 and resistance at 1.0301, Wednesday's high.

Official data earlier showed that Australia's trade deficit widened unexpectedly in January, rising to AUD1.06 billion from a deficit of AUD0.69 billion the previous month.

Analysts had expected the trade deficit to narrow to AUD0.50 billion in January.

Meanwhile, concerns over the outlook for growth in the euro zone persisted after data on Wednesday confirmed that the bloc's economy contracted by 0.6% in the fourth quarter, in line with preliminary estimates and economists' forecasts.

The greenback remained supported after ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 198,000 jobs in February, above expectations for an increase of 170,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

The Aussie was steady against the euro with EUR/AUD easing up 0.03%, to hit 1.2676.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.

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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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