Australian dollar rises on optimistic consumer confidence data

February 13, 2013 in Forex Analysis

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Economic news – 13 February 2013

 

The Australian dollar rose against most major currencies on Wednesday’s Asian session after upbeat consumer data was released. During yesterday’s trading, the Aussie reached its lowest level against the greenback since 15 October, down to 1.0231. However, as the Westpac and Melbourne Institute reported that the consumer confidence figure has climbed to 7.7%, its highest level since December 2010, the Aussie received a solid rebound. At the time of writing, the Australian currency was trading at 1.0341, an increase by 0.34%.

According to some analysts, chances for the RBA to cut its overnight cash rate from 3% in March are lower now. However, other market makers tend to consider a possible rate cut some time in 2013.

Following a series of recent negative data about the Australian economy, this week has provided another positive news, besides the strong consumer sentiment figures. On Tuesday, the National Australia Bank released its index of business confidence, which revealed an improvement to 3, compared to last month’s reading of 2.

There are more highlights in the focus of investors this week: the BoJ’s monetary policy meeting on Thursday and the G20 summit which is due to start in Moscow on Friday.

 

Technical analysis

At yesterday’s trading the Australian dollar was in the range of 1.0220 – 1.0315 USD. This morning the currency pair was trading at 1.0320 – 1.0355 USD.

Should the Aussie successfully overcome the resistance of 1.0355-1.0375, its aim will be reaching and testing the 1.0405-1.0410 zone. If successful, the upward trend will continue to 1.0440 – 1.0460. If it falls below the 1.0335 – 1.0320 support zone, the next support will be at 1.0310 – 1.0290. In case of a breakdown, the downward trend will continue to 1.0265 – 1.0245.

 

Source: dfmarkets.co.uk

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