Shutterstock photo
Markets

Forex - AUD/USD rises but upside seen to be limited

Shutterstock photo

Shutterstock photo

Investing.com - The Australian dollar rose against its U.S. counterpart on Monday, despite the release of mixed Chinese manufacturing data and as expectations for the Federal Reserve to soon scale back its stimulus program still supported the greenback.

AUD/USD hit 0.9207 during late Asian trade, the session high; the pair subsequently consolidated at 0.9196, climbing 0.60%.

The pair was likely to find support at 0.9114, Friday's low and a more than two year low and resistance at 0.9338, the high of June 27.

China's official manufacturing purchasing managers' index came in at 50.1 in June, above expectations for 50.0, following a reading of 50.8 in May.

Separately, China's HSBC manufacturing PMI fell to a nine-month low of 48.2 in June, down from a preliminary reading of 48.3 and further below the 50 level that separates contraction form expansion.

China is Australia's biggest export partner.

Meanwhile, the greenback remained supported by expectations that the Fed will soon start tapering its USD85 billion-a-month bond buying program. Investors were awaiting Friday's U.S. nonfarm payrolls data, with good data set to bolster the dollar further.

The Aussie was higher against the euro with EUR/AUD sliding 0.47%, to hit 1.4164.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing activity.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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.

Other Topics

ForEx