Australian dollar traded close to its highest point in three weeks against the US rival on Friday, before a report showed tomorrow that Chinese import probably grew, as China is Australias largest trade partner.
AUD/USD touched a session high at 0.9484 at 3:35 GMT, also the pairs highest point since September 19th, after which consolidation followed at 0.9473, gaining 0.21% for the day. Support was likely to be found at October 9th low, 0.9414, while resistance was to be met at September 19th high, 0.9524.
Australian dollar gained ground against the majority of its 16 major peers on a weekly basis, as Republican House Speaker John Boehner’s proposal and President Obama’s willingness to continue debating marked the first serious negotiations between the parties to find a solution to the budget crisis and end the partial government shutdown. The White House released a statement in which said that “no specific determination was made” and that the two sides discussed the “potential paths forward” during the 90-minute meeting. President Obama has stressed on the importance of raising the debt ceiling and ending the partial government shutdown, before broader fiscal talks are to be considered.
At the same time, US Treasury Secretary Jack Lew reiterated on Thursday that the nation’s borrowing authority will lapse on October 17th and also warned that the political crisis is starting to cause negative influence upon the economy.
Meanwhile, Chinese import figure probably rose 7% in September on annual basis, after recording the same rate of increase during the previous month, according to the median estimate of experts participated in a survey by Bloomberg News. The official report is scheduled for release tomorrow. “The momentum has picked up and a lot of the fears have waned over Chinese growth,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney, cited by the same media. “There’s no doubt that’s been one of the reasons the Aussie dollar has been more resilient than in the past.”
Elsewhere, the Aussie was lower against the euro, with EUR/AUD cross rising 0.11% on a daily basis to trade at 1.4323 at 8:53 GMT. AUD/NZD pair was losing 0.35% to trade at 1.1376 at 8:57 GMT. The Australian dollar has been the best performing currency during the past week, gaining 0.9%, among a basket of nine other developed-nation currencies, tracked by Bloomberg Correlation-Weighted Indexes. In addition, the New Zealand dollar has increased its value by 0.4% during the same period.
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