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Australian Dollar Rises To 2-day High Against Euro And Canadian Dollar

The Australian dollar climbed to a 2-day high against the euro and Canadian dollar in Asian deals on Thursday despite renewed concerns about the Eurozone debt crisis following a weak Spanish bond auction.

The Australian dollar also gained against the U.S. dollar and recovered from early lows against the yen and New Zealand dollar.

On Wednesday, the Spanish government was able to achieve only the lower end of its target with the sale of nearly 2.6 billion euros worth of bonds at its latest debt auction. Borrowing costs increased as investors became more concerned about Spain's public finances.

China's HSBC services PMI report released in the session failed to influence the Australian dollar.

A survey by Markit Economics revealed that the headline seasonally adjusted HSBC/Markit Business Activity Index, an indicator of activity in the service sector, fell to 53.3 in March from 53.9 in February.

The Australian dollar that closed yesterday's trading at 1.0234 against the Canadian dollar is currently trading at a 2-day high of 1.0266. The next upside target level for the aussie-loonie pair is seen at 1.032.

Against the euro, the Australian dollar is now trading at a 2-day high of 1.2773, compared to Wednesday's close of 1.2804. If the aussie advances further, it may likely target the 1.275 level.

The Australian dollar is presently worth 1.0300 against the US dollar with 1.034 seen as the next upside target level. At yesterday's close, the aussie-greenback pair was quoted at 1.0270.

The Australian dollar is now trading at 84.70 against the yen, up from an early low of 84.39. If the aussie gains further, it may likely target the 85.0 level. The aussie ended Wednesday's trading at 84.66 against the yen.

Against the New Zealand dollar, the Australian dollar rose after hitting a low of 1.2585 at 9:40 pm ET. As of now, the aussie-kiwi pair is trading near Wednesday's close of 1.2607. The near term resistance level for the aussie is seen at 1.263.

Looking ahead, Swiss CPI for March, U.K. and German industrial production reports for February are slated for release in the European session.

The Bank of England is due to announce its interest rate decision at 7 am ET. The bank is widely expected to keep rates on hold at 0.5 percent.

The U.S. weekly jobless claims report for the week ended March 31, Canada's building permits for February, jobs data and Ivey PMI for March are expected in the New York morning session.

by RTTNews Staff Writer

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