The Australian dollar edged higher against its U.S. counterpart on Monday, despite disappointing Australian operating profits data as relatively positive manufacturing reports from China lent support.

AUD/USD hit 0.9344 during late Asian trade, the session high; the pair subsequently consolidated at 0.9349, adding 0.12%.

The pair was likely to find support at 0.9310, the low of August 27 and resistance at 0.9374, the high of August 28.

Official data showed that gross company operating profits in Australia dropped 6.9% in the second quarter, compared to expectations for a 1.8% decline. Australia's first quarter gross company operating profits were revised to an increase of 2.0% from a previously estimated 3.1% rise.

Elsewhere, data showed that China's manufacturing purchasing managers' index ticked down to 51.1 in August, from a reading of 51.7 the previous month, still in expansion territory.

China's HSBC Final Manufacturing PMI slipped to 50.2 last month, from 50.3 in July, also remaining in expansion territory.

China is Australia's biggest export partner.

The Aussie was higher against the euro, with EUR/AUD falling 0.14% to 1.4045.

Trade volumes looked likely to remain light on Monday, with markets in the U.S. closed for the Labor Day holiday.

Start Trading
Follow us in social networks!
Live Chat
Leave feedback