The Australian dollar rose against its U.S. counterpart on Thursday, despite downbeat Australian jobs data, as a Chinese trade balance report lent support to the Aussie.
AUD/USD hit 0.9090 during late Asian trade, the pair's highest since July 30; the pair subsequently consolidated at 0.9081, advancing 0.91%.
The pair was likely to find support at 0.8920, Wednesday's low and resistance at 0.9206, the high of July 30.
Official data showed that the number of employed people in Australia fell by 10,200 in July, confounding expectations for a 5,000 rise. June's figure was revised down to a 9,300 rise from an initial 10,300 increase.
The report also showed that Australia's unemployment rate remained unchanged at 5.7% last month, compared to expectations for an uptick to 5.8%.
Separately, Chinese trade data release showed that exports were up 5.1% from a year earlier in June, easing concerns over a slowdown in the world’s second-largest economy. Imports were 10.9% higher on a year-over-year basis, pointing to strong domestic demand.
China is Australia's biggest export partner.
The Aussie was sharply higher against the euro with EUR/AUD dropping 0.87%, to hit 1.4691.
Sy Forex
EUR/USD edges higher, gains limited
The euro edged higher against the dollar on Wednesday but gains were limited after comments by senior Federal Reserve officials indicated that the U.S. central bank could soon start to unwind its asset purchase program.
EUR/USD hit 1.3324 during U.S. morning trade, the highest since July 31; the pair subsequently consolidated at 1.3314, inching up 0.06%.
The pair was likely to find support at 1.3245, Tuesday’s low and resistance at 1.3343, the high of July 31 and a six-week high.
Uncertainty over how soon the Fed will begin to unwind its USD85 billion-a-month stimulus program persisted following comments by senior Fed officials on Tuesday.
Chicago Federal Reserve Bank Chairman Charles Evans said he would not rule out the withdrawal of stimulus measures at the bank’s September meeting, echoing remarks by Dennis Lockhart, president of the Atlanta Fed earlier Tuesday.
The euro found support after official data showed that German industrial production jumped 2.4% in June, easily surpassing expectations for a 0.3% increase.
The report came one day after stronger-than-forecast German factory orders data reinforced expectations that the euro zone economy is starting to recover.
Elsewhere, the single currency was sharply lower against the pound, with EUR/GBP falling 0.91% to 0.8589.
Sterling rallied against the euro and the dollar after the Bank of England outlined plans to keep interest rates at current record lows until the U.K. unemployment rate falls to a threshold of 7%.
BoE Governor Mark Carney said the bank plans to keep interest rates on hold at 0.5% until the U.K. unemployment rate falls to a threshold of 7% from its current level of 7.8%, something he added is unlikely to occur for another three years.
The comments came during the press conference for the bank’s quarterly inflation report.
Carney said unemployment is not a target and that the 7% threshold could be set aside if low bank rates begin to pose a threat to financial stability or if medium term inflation forecasts rise above 2.5%.
EUR/USD hit 1.3324 during U.S. morning trade, the highest since July 31; the pair subsequently consolidated at 1.3314, inching up 0.06%.
The pair was likely to find support at 1.3245, Tuesday’s low and resistance at 1.3343, the high of July 31 and a six-week high.
Uncertainty over how soon the Fed will begin to unwind its USD85 billion-a-month stimulus program persisted following comments by senior Fed officials on Tuesday.
Chicago Federal Reserve Bank Chairman Charles Evans said he would not rule out the withdrawal of stimulus measures at the bank’s September meeting, echoing remarks by Dennis Lockhart, president of the Atlanta Fed earlier Tuesday.
The euro found support after official data showed that German industrial production jumped 2.4% in June, easily surpassing expectations for a 0.3% increase.
The report came one day after stronger-than-forecast German factory orders data reinforced expectations that the euro zone economy is starting to recover.
Elsewhere, the single currency was sharply lower against the pound, with EUR/GBP falling 0.91% to 0.8589.
Sterling rallied against the euro and the dollar after the Bank of England outlined plans to keep interest rates at current record lows until the U.K. unemployment rate falls to a threshold of 7%.
BoE Governor Mark Carney said the bank plans to keep interest rates on hold at 0.5% until the U.K. unemployment rate falls to a threshold of 7% from its current level of 7.8%, something he added is unlikely to occur for another three years.
The comments came during the press conference for the bank’s quarterly inflation report.
Carney said unemployment is not a target and that the 7% threshold could be set aside if low bank rates begin to pose a threat to financial stability or if medium term inflation forecasts rise above 2.5%.
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