Shutterstock photo
Markets

Forex - Aussie and kiwi rise against greenback after Chinese data

Shutterstock photo

Shutterstock photo

Investing.com - The Australian and New Zealand dollars were higher against their U.S. counterpart in subdued trade on Monday, after upbeat Chinese manufacturing data, although concerns over U.S. fiscal policy continued to weigh.

AUD/USD hit 1.0409 during late Asian trade, the pair's highest since December 24; the pair subsequently consolidated at 1.0381, adding 0.08%.

The pair was likely to find support at 1.0362, the low of December 28 and resistance at 1.0416, the high of December 24.

NZD/USD hit 0.8247 during late Asian trade, the pair's highest since December 23; the pair subsequently consolidated at 0.8219, rising 0.26%.

The pair was likely to find support at 0.8182, the low of December 28 and resistance at 0.8260, the high of December 4.

A report from HSBC released earlier confirmed that manufacturing activity in China expanded at the fastest pace since May 2011 in December. The final version of China's HSBC Purchasing Managers Index rose to 51.5 in December from a final reading of 50.5 in November.

China is Australia's biggest export partner and New Zealand's second biggest.

Meanwhile, market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1 unless Democrats and Republicans agree how to cut the deficit.

U.S. President Barack Obama met with congressional leaders at the White House Friday afternoon, but both sides failed to reach an agreement ahead of the looming year-end deadline.

Senate Majority Leader Harry Reid said the Senate would resume sitting on Monday to continue discussions, but there were still significant differences between the two sides.

Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

Elsewhere, the Aussie and the kiwi were both higher against the euro with EUR/AUD falling 0.33% to hit 1.2699, and EUR/NZD dropping 0.59% to hit 1.6030.

Trading volumes were expected to remain thin as many investors already closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.

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