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Forex - AUD/USD lower amid growth concerns

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Investing.com - The Aussie dollar started Wednesday's Asian session higher against its U.S. rival, but those gains wilted and turned into small losses as traders backed away from some of the higher-yielding currencies due to waning risk appetite.

In Asian trading Wednesday, fell 0.01% to 1.0565 and traded as low as 1.0557. The pair was likely to find support at 1.0494, the low of January 10 and resistance at 1.0591, the high of January 11.

The Aussie dollar was boosted earlier this week when Federal Reserve Chairman Ben Bernanke said he expects the central bank to continue its bond-buying program to continue "well into 2013." However, riskier currencies had to contend with a World Bank report that projected global economic growth of just 2.4% this year, well below the original forecast of 3%.

The Australian dollar was also hampered by a Westpac Banking Corp. and Melbourne Institute survey that showed increased just 0.6% to 100.6 in January, barely above the reading of 100.3 seen in December. Readings above 100 are considered bullish, but after a spate of concerning Australian data points, traders may have been hoping for a more robust sentiment report.

The U.S. provided its own array of mixed data points on Tuesday that are perhaps weighing on riskier currencies today as well. In U.S. economic news, the Commerce Department reported a 0.5% increase in retail sales for December compared with a 0.4% rise in November. Economists expected a December increase of just 0.2%.

The Labor Department said an index of wholesale prices fell 0.2% last month following a 0.8% decline in November. Excluding volatile food and energy prices, wholesale prices rose 0.1% in December and 2% for all of 2012.

The New York Empire State manufacturing index fell to -8.1 in December from -5.2 in November, well below the consensus estimate of -1. That is the fifth consecutive month the gauge has been in negative territory.

Elsewhere, EUR/AUD fell 0.14% to 1.2579. AUD/JPY plunged 0.7% to 93.14 while AUD/NZD dropped 0.11% to 1.2568.

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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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