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Forex - AUD/USD edges higher but gains capped

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Investing.com -

Investing.com - The Australian dollar edged higher against its U.S. counterpart on Tuesday, supported by the release of upbeat Australian business confidence data, although other disappointing economic reports seemed to limit gains.

AUD/USD hit 0.9369 during late Asian trade, the pair's highest since May 16; the pair subsequently consolidated at 0.9371, adding 0.17%.

The pair was likely to find support at 0.9258, the low of June 5 and resistance at 0.9409, the high of May 14.

The National Australia Bank earlier reported that its business confidence index rose to 7 last month, from a reading of 6 in April.

A separate report showed however that job advertisements in Australia dropped 5.6% in May, after a 1.9% increase in April, whose figure was revised down from a previously estimated 2.2% gain.

Data also showed that home loans in Australia were flat in April, compared to expectations for a 0.2% rise, after a 0.8% fall in March, whose figure was revised up from a previously estimated 0.9% decline.

Meanwhile, demand for the greenback remained supported after U.S. employment data released last Friday fuelled further optimism over the strength of the job market's recovery.

The Department of Labor reported that the U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while the unemployment rate remained unchanged at a five-and-a-half year low of 6.3%.

The Aussie was higher against the euro, with EUR/AUD edging down 0.14% to 1.4509.

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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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