Forex - Aussie hits 3-month high as greenback hit by debt woes
Investing.com
Published Jul 26, 2011 03:24AM ET
Investing.com – The Australian dollar surged to a three-month high against its U.S. counterpart on Tuesday, as the greenback came under increasing selling pressure as talks over raising the U.S. debt ceiling remained deadlocked.
AUD/USD hit 1.0941 during late Asian trade, the pair’s highest since May 3; the pair subsequently consolidated at 1.0927, gaining 0.77%.
The pair was likely to find support at 1.0794, Monday’s low and resistance at 1.1011, the high of May 2 and the pair’s post-float high.
Late Monday, U.S. President Barack Obama warned that the nation’s growing debt threatened to do “serious” damage to the economy and called on Congress to compromise, in order to avert a "reckless and irresponsible" national default.
Meanwhile, Reserve Bank of Australia Governor Glenn Stevens said earlier that the nation’s consumer spending was likely to rebound “at some point” as households gained confidence in mining-led economic growth.
The Aussie was also higher against the yen, with AUD/JPY rising 0.49% to hit 85.31.
Also Tuesday, a report showed that the Conference Board's leading index for Australia declined 0.1% May, indicating that growth is likely to remain subdued in the near term.
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Written By: Investing.com
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