News Column

Australian Dollar Strengthens Against Most Majors

June 8, 2014

CANBERA (Alliance News) - The Australian dollar climbed against most major currencies in Asian deals on Monday as strong US jobs data and Chinese trade surplus for May, along with encouraging Japanese GDP report for the first quarter lifted up investor sentiment.

Data from General Administration of Customs showed over the weekend that China's trade surplus increased to USD35.92 billion in May, from USD18.46 billion in April.

Imports declined 1.6% on year in May, while exports rose 7%.

Japan's economy grew an annualized 6.7% in the January - March 2014 quarter, in inflation-adjusted terms, data from the Cabinet Office showed today. This is up from preliminary reading of 5.9%, and also higher than forecasts for 5.6% increase.

The US economy created 217,000 jobs in May, up from expectations for an increase of 215,000 jobs, data revealed last week. The unemployment rate was unchanged at 6.3%.

The aussie hit 95.91 against the yen for the first time since May 14. This is up 0.3% from Friday's closing value of 95.58. On the upside, 97.4 is seen as next resistance level for the aussie.

The aussie that closed Friday's deals at 0.9327 against the greenback and 1.0196 against the loonie rose to 0.9350 and 1.0224, respectively. The next possible resistance for the aussie lies around 0.94 against the greenback and 1.035 against the loonie.

The aussie edged up to 1.4590 against the euro, compared to last week's closing quote of 1.4606. The aussie is likely to find resistance around the 1.45 mark.

At 1:00 am ET, Japan's consumer confidence index for May is due.

Eurozone Sentix indicator for June is set for release in the European session.

Canada housing starts data for May is to released at 8:15 am ET.

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Source: Alliance News

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