AUD

Forexpros - The Australian dollar ended the week lower against its U.S. counterpart on Friday, as markets were jittery amid ongoing concerns over Greece’s debt woes despite signs of progress in the euro zone.

AUD/USD hit 1.0596 on Thursday, the pair’s lowest since February 1; the pair subsequently consolidated at 1.0693 by close of trade on Friday, shedding 0.71% over the week.

The pair is likely to find support at 1.0591, the low of January 27 and resistance at 1.0773, the high of February 16.

Sentiment slightly improved earlier in the week after euro zone finance ministers agreed to deliver a EUR130 billion bailout package to Greece. 
However, Eurogroup Chairman Jean-Claude Juncker said on Friday that he could not rule out that Athens may need a third bailout.

Meanwhile, Reserve Bank of Australia Governor Glenn Stevens said Australia’s benchmark interest rate is “about right for the moment” as economic growth is close to trend while concerns over the effects of the euro zone’s debt crisis on global output eased.

The Aussie remained supported after Greece launched a bond-swap offer to private-sector creditors, formally inviting them to exchange their holdings of government debt for new securities. 

Meanwhile, markets were eyeing the European Central Bank, scheduled to launch a second liquidity operation next week, offering unlimited three-year loans to European lenders, after the bank carried out a similar successful operation in December.

In the U.S., a string of improved economic data lifted sentiment. A report by the University of Michigan on Friday showed that its index consumer sentiment rose to 75.3 this month from 75 in January.

On Thursday, the U.S. Department of Labor said that the number of individuals filing for initial jobless benefits in the week ending February 18 held steady at 351,000, the fewest since March 2008.

Earlier in the week, the Reserve Bank of Australia said in the minutes of its February meeting that it remained willing to ease policy if commodity and raw material demand were to “weaken materially” although it left rates unchanged this month. 

Meanwhile, official data showed that Australian wage prices rose more-than-expected in the fourth quarter, adding 1% after a 0.7% increase the previous quarter. Analysts had expected wage prices to rise 0.8% in the fourth quarter. 

In a separate report, the Melbourne Institute said that its inflation gauge for Australia rose 0.5% in January after a 0.1% fall the previous month.

The data came after a report by the Conference Board showing that its leading index for Australia rose 0.2% in December after a 0.3% decline the previous month.

In the coming week, markets will be watching developments in the euro zone, with investors eyeing the uptake on Wednesday’s refinancing operation by the ECB, as well as the outcome of votes in Finland and Germany on Greece’s bailout.

Investors will also be focusing on Wednesday’s U.S. data on fourth quarter economic growth, in order to gauge the strength of the country’s economic recovery.

Ahead of the coming week, Forexpros has compiled a list of these and other significant events likely to affect the markets. The guide skips Friday as there are no relevant events on this day.