Investing.com – The Australian dollar edged higher against its U.S. counterpart on Monday, hitting a fresh 26-month high amid increased expectations of an interest rate hike by the Reserve Bank of Australia next week.
AUD/USD hit 0.9623 during European afternoon trade, the pair's highest since July 24, 2008; the pair subsequently consolidated at 0.9612, gaining 0.19%.
The pair was likely to find support at 0.9462, last Friday's low and resistance at 0.9850, the high of July 15, 2008.
Last week the Reserve Bank of Australia indicated that it could raise its benchmark interest rate at its October 5 meeting, in an effort to cool the rapidly growing Australian economy, in the midst of a mining and energy boom.
Australia’s benchmark cash rate is currently 4.5% compared to 0.25% in the U.S., 1% in the euro zone and 0.1% in Japan.
The Aussie was also up against the euro, with EUR/AUD shedding 0.41% to hit 1.4006.
Earlier Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.
AUD/USD hit 0.9623 during European afternoon trade, the pair's highest since July 24, 2008; the pair subsequently consolidated at 0.9612, gaining 0.19%.
The pair was likely to find support at 0.9462, last Friday's low and resistance at 0.9850, the high of July 15, 2008.
Last week the Reserve Bank of Australia indicated that it could raise its benchmark interest rate at its October 5 meeting, in an effort to cool the rapidly growing Australian economy, in the midst of a mining and energy boom.
Australia’s benchmark cash rate is currently 4.5% compared to 0.25% in the U.S., 1% in the euro zone and 0.1% in Japan.
The Aussie was also up against the euro, with EUR/AUD shedding 0.41% to hit 1.4006.
Earlier Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.