Forex - AUD/USD pares gains after disappointing economic data
Investing.com
Published May 31, 2011 03:05AM ET
AUD/USD pulled away from 1.0756, the pair’s highest since May 11, to hit 1.0691 during late Asian trade, up just 0.02% on the day.
The pair was likely to find short-term support at 1.0604, last Friday’s low and resistance at 1.0888, the high of May 11.
The Australian Bureau of Statistics said the current-account deficit increased to AUD10.45 billion in the first quarter, from a revised AUD8.09 billion in the previous quarter. Economists had expected the deficit to widen to AUD10.1 billion in the three months to March.
A separate report showed that the number of permits granted to build or renovate houses and apartments declined 1.3% in April from March, when they rose a revised 8.6%. Analysts had expected building permits to decline by 1.7% last month.
Meanwhile, the Aussie was sharply lower against its New Zealand cousin, with AUD/NZD tumbling 0.94% to hit 1.2971.
Earlier Tuesday, a report showing that business confidence in New Zealand surged to a one-year high in April bolstered expectations that the country’s central bank will raise interest rates this year.
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Written By: Investing.com
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