During early Asian deals on Wednesday, the Aussie edged up against other major currencies as a report showed that the Australian economy grew in the first quarter of 2010.
The Aussie thus recouped most of the losses it incurred in New York session yesterday.
Australia’s economy grew by a seasonally adjusted 0.5% between January and March compared to the preceding three months, official figures showed. The Australian Bureau of Statistics said that gross domestic product increased 2.7% in the March quarter compared to a year ago. The quarterly increase matched matched analyst forecasts, while the annual growth was slightly better than expectations.
Quarterly growth for the final quarter of 2009 was also revised up to 1.1% from 0.9%. The economy had grown 0.3% in the September quarter of last year.
The Australian dollar rose against the currencies of US and Japan in early Asian deals on Wednesday. At present, the aussie is worth 0.8368 against the greenback and 76.74 against the yen, up from yesterday’s close of 0.8315 and 75.61, respectively. If the aussie gains further, it may likely target 0.844 against the greenback and 77.0 against the yen.
Media reports said today that Japan Prime Minister Yukio Hatoyama has submitted his resignation. The news might have weakened the Japanese yen.
During early Asian deals on Wednesday, the Aussie climbed against the Canadian dollar. As of now, the aussie-loonie pair is worth 0.8794, compared to 0.8777 hit late New York Tuesday. On the upside, 0.883 is seen as the next target level for the Australian currency.
The Aussie strengthened against the euro in early Asian deals on Wednesday. The aussie is currently worth 1.4645 per euro, compared to a new multi-day low of 1.4743 hit at 5:25 pm ET Tuesday. The next upside target level for the aussie is seen at 1.444. The euro-aussie pair closed yesterday’s New York session at 1.4716.
The Aussie that declined to an 8-day low of 1.2299 against the New Zealand dollar in early Wednesday Asian deals at 8:15 pm ET recovered thereafter. The aussie-kiwi pair is presently worth 1.2340, up from yesterday’s close of 1.2330. If the aussie advances further, it may find resistance around the 1.252 level.
Looking ahead, the Euro-zone PPI for April is due for release in the upcoming European session.
The U.S. ADP employment data for May and the pending home sales for April are expected to influence trading in the North American session.