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Australian Dollar Rises Against Majors

02:24, 1st September 2014

(RTTNews) - The Australian dollar strengthened against the other major currencies in the Asian session on Monday amid gain in regional shares, with focus on upcoming central bank meeting.

The benchmark S&P/ASX 200 Index is currently up 13.40 points or 0.24 percent at 5,639 and the broader All Ordinaries index is also up 13.40 points or 0.24 percent at 5,638.

Traders await the Reserve Bank of Australia's interest rate decision due tomorrow. The economists expect the bank to hold rates at 2.50 percent.

In the economic news, data from the Australia Industry Group showed that the manufacturing sector in Australia lost ground in August, with a performance of manufacturing index score of 47.3. That's down from 50.7 in July, and it slides back below the boom-or-bust mark of 50 that separates expansion from contraction.

Separate data from the the Australian Bureau of Statistics showed that Company operating profits in Australia were down a seasonally adjusted 6.9 percent in the second quarter of 2014 compared to the previous three months. That missed forecasts for a decline of 2.0 percent following the downwardly revised 2.0 percent gain in the first quarter (originally 3.1 percent). Profits were up 0.8 percent on year.

In the New York Session overnight, the Australian dollar fell against the other major currencies.

The Australian dollar strengthened to a 15-month high of 97.31 against the yen, from an early low of 97.05. If the aussie extends its uptrend, it is likely to find resistance around the 97.50 area.

Data from the Markit Economics showed that the manufacturing sector in Japan expanded at an accelerated pace in August, with a purchasing managers' index score of 52.2. That missed forecasts for 52.4, although it's up significantly from 50.5 in July.

Moving away from an early 5-day low of 0.9317 against the U.S. dollar, the aussie recovered to 0.9341. At last week's close, the aussie was trading at 0.9331 against the greenback. The aussie is likely to find resistance around the 0.94 region.

Against the Canadian dollar, the aussie recovered to 1.0155, from an early low of 1.0131. Continuation of bullish trend may lead the aussie to a resistance around the 1.02 mark.

The aussie, which ended last week's deals at at 1.4058 against the euro, appreciated to a 14-month high of 1.4045. This may be compared to an early low of 1.4081. On the upside, 1.402 is seen as next resistance level for the aussie.

Looking ahead, PMIs from major European economies for August are due in the European session

The U.S. markets are closed in observance of Labor day holiday.

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