The Australian dollar dropped to a six-day low against its U.S. counterpart on Thursday, after the release of tepid Australian employment reports, while concerns over the U.S. debt ceiling continued to weigh. AUD/USD hit 1.0494 during late Asian trade, the low of January 9; the pair subsequently consolidated at 1.0506, shedding 0.62%. The pair was likely to find support at 1.0470, the low of January 8 and resistance at 1.0576, the session high. Official data showed that the Australian economy cut 5,500 jobs in December, disappointing expectations for a 4,500 rise, after a 17,100 increase the previous month. Australia’s unemployment rate ticked up to 5.4% last month from 5.3% in November, in line with expectations. Separately, the Melbourne Institute said that inflation expectations in Australia edged up to 2.0% in December, from 1.8% the previous month. Meanwhile, uncertainty over the U.S. debt ceiling deadlock continued to weigh after President Barack Obama urged Republicans earlier in the week to approve an increase in the borrowing limit without seeking policy concessions in return. Markets were also jittery after the World Bank cut on Tuesday its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013. The Aussie was lower against the euro with EUR/AUD climbing 0.62%, to hit 1.2646. Later in the day, the U.S. was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
EasyForexNews Research Team