Aussie, Greenback and Euro Look Strong Despite Not-So-Encouraging Data

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Aussie, Greenback and Euro Look Strong Despite Not-So-Encouraging Data
Aussie, Greenback and Euro Look Strong Despite Not-So-Encouraging Data

The Asian trading session on Wednesday morning saw the Australian dollar weighing over the U.S. dollar, even though the predictions made by the National Australia Bank about the status of the Aussie were not so great. The National Australia Bank had stated on Wednesday that the Australian dollar might go down by 93 cents against its U.S. rival, following the drop of the Aussie to a 33-month low against the greenback.

The AUD/USD pair surged by 0.41% to trade at 0.9466, with analysts estimating that it would gain strength at 0.9390 and face resistance at 0.9574, which is the low of October 4 and the high of June 7, in that order.

AUD/JPY duo also rose by 0.86% to trade at 91.40, ahead of the Japanese core machinery orders report that indicated a drop of 8.8% in April against the expected decline of 8.2%. The unadjusted core orders also showed a dip of 1.1%. AUD/NZD witnessed a marginal increase of 0.08% to trade at 1.1989.

On the other hand, the greenback showed a mixed trend against most of its counterparts, following the discouraging data released on Tuesday. The U.S. dollar recovered against its Japanese counterpart, following the mixed data report in the country. USD/JPY went up by 0.41% in Asian session on Wednesday to trade at 96.43, bouncing back from Tuesday’s 2.1% slip. USD/JPY was supposed to gain at 95.00 and attract resistance at 99.29.

Despite the weak machinery orders data that is a vital aspect of capital investment, the figures released by the Bank of Japan suggested that Corporate Goods Price Index in Japan climbed 0.6% as expected by analysts.

Elsewhere, the USD/CHF climbed up by 0.02% to trade at 0.9250. USD/CAD inched up by 0.03% to trade at 1.0195 in Asian trading on Wednesday.

EUR/USD witnessed a surge of 0.02% to trade at 1.3318 in Asian trading, despite MSCI’s decision to relegate Greece to feature in the list of developing markets. MSCI was the second index provider to downgrade Greece, the first being Russell Investments that demoted Greece earlier this year in March.