FX News - April 10 2014: AUD/USD Rises Anew, GBP/USD Stays Flat

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Australia’s positive employment data released earlier helped the AUD/USD pair break past the 0.9400 level today. The country’s unemployment rate in March beat expectations when it came out at 5.8% instead of 6.0%. The previous period’s rate was at 6.1%. Employment change for the same period, meanwhile, was at 18,100, which was higher than the expected 5,000. Fulltime employment contracted by 22,100, however, while part-time employment rose by 40,200. In addition to the country’s employment data, its consumer inflation expectation for March was at 2.4%, higher than the previous 2.1%.

China also released its trade data for March, wherein its trade balance was at $7.71 billion, higher than the $0.90 billion expected. Exports fell by 6.6% over the past 12 months, however, which was worse than the expected rise by 4.0%. Imports for the same period also fell by 11.3%, instead of a 2.4% rise as analysts expected.

The news from China, however, didn’t affect the AUD/USD’s performance today as it finally broke past the 0.9400 just a day after it broke through the 0.9300 barrier. It has so far peaked today at 0.9461 at the opening of the London session, but has slightly slid down after that. It is currently trading at 0.9417, with initial resistance seen at 0.9430, followed by 0.9453. Meanwhile, initial support is at 0.9363, followed by 0.9339.

As for the GBP/USD, the pair continued to trade within a narrow range between the 1.6770 and 1.6800 areas after the Bank of England announced no changes to the country’s interest rate, which remains at 0.5%. The bank also said that it would maintain its purchase asset facility at £375 billion, which was within analysts’ expectations.

The GBP/USD pair is currently trading at 1.6775, with initial resistance seen at 1.6836, followed by 1.6878. Meanwhile, initial support is at 1.6758, followed by 1.6716.

By FX Strategy Team, Published on 10th of April 2014
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