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Forex - Aussie surges to 6-week high against greenback

Published 03/08/2010, 05:31 AM
AUD/USD
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Investing.com - The Australian dollar surged to a 6-week high against its U.S. counterpart on Monday, as risk appetite sharpened after European officials signaled their support for debt-laden Greece. 

AUD/USD rose to 0.9131 shortly before the European trading session, its highest rate since Jan. 21; the pair subsequently consolidated around 0.9116, gaining 0.43%. 

The pair was likely to find resistance at 0.9327, the high of Jan. 14, and support at 0.88, the low of Feb. 25. 

The Aussie also rose against the euro, with EUR/AUD shedding 0.24% to reach 1.4971. 

On Sunday, French President Nicolas Sarkozy said the euro zone was ready to help Greece plug its gaping budget deficit. 

"I want to be very clear. If necessary, eurozone governments will fulfill their commitments and there can be no doubt about that," AFP quoted Sarkozy as telling a joint news conference with the Greek prime minister, George Papandreou. 

Meanwhile, the Sentix research group said on Monday that investor sentiment in the euro zone rose at a faster-than-expected pace in March. 

Sentix's closely watched gauge of investor and analyst sentiment rose from -8.2 in February to -7.5 in March, data showed. Economists had expected the tally to rise only to -7.6.

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