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Forex - AUD/USD near 2-month highs as RBA rate cut expectations ease

Published 03/26/2013, 03:37 AM
Updated 03/26/2013, 03:43 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar edged up against its U.S. counterpart on Tuesday, to trade near two-month highs as expectations for further rate cuts by the Reserve Bank of Australia subsided.

AUD/USD hit 1.0477 during late Asian trade, the session high; the pair subsequently consolidated at 1.0476, edging 0.11% higher.

The pair was likely to find support at 1.0433, Monday's low and resistance at 1.0516, the high of January 7.

Speculation over upcoming rate cuts declined as RBA Governer Glenn Stevens did not comment on monetary policy and declined to answer a question on fiscal policy at the Australian Securities and Investments Commission Annual Forum, earlier in the day.

But investors remained cautious after the head of the Eurogroup, Jeroen Dijsselbloem, said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

The Aussie was lower against the euro with EUR/AUD adding 0.15%, to hit 1.2298.

Later in the day, the U.S. was to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.


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