Breaking News

Forex - AUD/USD falls to fresh 5-1/2 year lows after data, Fed

ForexJan 29, 2015 02:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Aussie drops further vs. greenback, Fed statement weighs

Investing.com - The Australian dollar fell to fresh five-and-a-half year lows against its U.S. counterpart on Thursday, after disappointing Australian import prices data and as the Federal Reserve's latest policy statement supported demand for the greenback.

AUD/USD hit 0.7854 during late Asian trade, the pair's lowest since August 2009; the pair subsequently consolidated at 0.7874, edging down 0.15%.

The pair was likely to find support at 0.7699 and resistance at 0.8025, Wednesday's high.

In a report, the Australian Bureau of Statistics said that import prices rose 0.9% in the last quarter, confounding expectations for an increase of 1.5%, after a 0.8% fall in the three months to September.

Meanwhile, the greenback strengthened after the Fed indicated that interest rates could start to rise around mid-year.

Following its policy meeting on Wednesday, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.

The central bank also said it expected inflation to keep declining in the short term and added that it would take "financial and international developments" into account before deciding when to hike borrowing costs.

The Aussie was lower against the euro, with EUR/AUD adding 0.18% to 1.4338.

Later in the day, the U.S. was to publish the weekly report on initial jobless claims as well as private sector data on pending home sales.

Forex - AUD/USD falls to fresh 5-1/2 year lows after data, Fed

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.