Investing.com – The Australian dollar surged to a fresh 1-month high against its U.S. counterpart on Monday, after a senior official from the U.S. Federal Reserve said a strong global economic recovery was underway.
AUD/USD hit 1.8642 during European afternoon trade, its highest since May 18; the pair subsequently consolidated at around 0.8640, gaining 1.61%.
The pair was likely to find support at 0.8425, Friday’s low and short-term resistance at 0.8788, the high of May 18.
Earlier in the day, James Bullard, the St. Louis Federal Reserve Bank president, said a strong global economic recovery was underway and that it was unlikely to be derailed by Europe's debt crisis or the bursting of an asset bubble in China.
The Aussie was also up against the euro, with EUR/AUD shedding 0.41% to hit 1.4184.
Earlier Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel met ahead of Thursday’s European Union summit.
The pair urged the EU to speed up curbs on financial speculation, saying some bets against government bonds and stocks should be prohibited as markets suffer a renewal of "strong volatility."
AUD/USD hit 1.8642 during European afternoon trade, its highest since May 18; the pair subsequently consolidated at around 0.8640, gaining 1.61%.
The pair was likely to find support at 0.8425, Friday’s low and short-term resistance at 0.8788, the high of May 18.
Earlier in the day, James Bullard, the St. Louis Federal Reserve Bank president, said a strong global economic recovery was underway and that it was unlikely to be derailed by Europe's debt crisis or the bursting of an asset bubble in China.
The Aussie was also up against the euro, with EUR/AUD shedding 0.41% to hit 1.4184.
Earlier Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel met ahead of Thursday’s European Union summit.
The pair urged the EU to speed up curbs on financial speculation, saying some bets against government bonds and stocks should be prohibited as markets suffer a renewal of "strong volatility."