Investing.com - The Australian dollar edged higher against its U.S. counterpart on Friday, after data showed that U.S. new home sales rose less-than-expected last month.
AUD/USD settled at 0.8792 by close of trade on Friday, up 0.36% for the day and 0.54% higher for the week.
The pair is likely to find support at 0.8718, the low from October 24, and resistance at 0.8831, the high from October 21.
The dollar came under pressure after official data showed that U.S. new home sales rose 0.2% last month to 467,000 units, below expectations for an increase to 470,000 units.
August's figure was downwardly revised to a 15.3% climb to 466,000 units from a previously estimated 18.0% jump to 504,000 units.
Despite Friday's disappointing housing data, investors remained confident in the U.S. economic recovery, fuelling speculation that the Federal Reserve could hike interest rates sooner than expected.
Elsewhere, in Australia, a government report on Wednesday showed that consumer price inflation rose 0.5% in the third quarter, more than the expected 0.4% increase.
Year-on-year, Australia's CPI rose 2.3% in the last quarter, in line with expectations, after an increase of 3.0% in the second quarter.
Data from the Commodities Futures Trading Commission released Friday showed that speculators added to their bearish bets on the Australian dollar in the week ending October 21.
Net shorts totaled 31,509 contracts, compared to net shorts of 30,271 in the preceding week.
In the week ahead investors will be looking ahead to the outcome of Wednesday’s Federal Reserve meeting amid expectations that it will wind up asset purchases under its third round of quantitative easing.
Investors will be scrutinizing the Fed statement for further indications on how soon interest rates could start to rise.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 27
The U.S. is to publish an industry report on pending home sales.
Tuesday, October 28
The U.S. is to release data on durable goods orders and a report by the Conference Board on consumer confidence.
Wednesday, October 29
The Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, October 30
Australia is to release a report on import prices.
The U.S. is to publish revised data on third quarter GDP, as well as the weekly report on initial jobless claims. Later in the day, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.
Friday, October 31
The U.S. is to round up the week with data on personal income and expenditure as well as revised data on consumer sentiment and a report on business activity in the Chicago region.