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Forex - AUD/USD near 3-year lows despite positive Australian data

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Investing.com - The Australian dollar slipped against its U.S. counterpart on Thursday, to trade near three-year lows despite positive Australian data, as the greenback gained ground after the Federal Reserve gave no indication on when it will start to taper its stimulus program.

AUD/USD hit 0.8928 during late Asian trade, the session low; the pair subsequently consolidated at 0.8960, declining 0.27%.

The pair was likely to find support at 0.8928, Wednesday's low and a three-year low and resistance at 0.9072, Wednesday's high.

Industry data earlier showed that new home sales in Australia rose 3.4% in June, after a 1.6% increase the previous month.

Separately, a government report showed that China's manufacturing purchasing managers' index rose to 50.3 in July from 50.1 in June.

China is Australia's biggest export partner.

But the greenback found support after, at the end of its two-day policy meeting on Wednesday, the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".

However, speculation that the central bank could begin to scale back its stimulus program as soon as September persisted in light of recent U.S. economic reports. Investors were also eyeing the release of U.S. employment data on Friday.

The Aussie was steady against the euro with EUR/AUD inching up 0.02%, to hit 1.4806.

Later in the day, the U.S. was to release official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.

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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.

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