Forex - AUD/USD cools amid profit-taking

Published 02/07/2012, 10:52 PM
Updated 02/07/2012, 10:55 PM
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Investing.com - The Aussie dollar eased against its U.S. counterpart on Wednesday after climbing on a surprise Reserve Bank of Australia decision a day earlier to leave benchmark interest rates unchanged at 4.25%.

Australian monetary policy officials expressed confidence that U.S. and Chinese economies could withstand shocks from a European meltdown, which sparked the Aussie rally, although profit-taking kicked in by Wednesday.

AUD/USD hit 1.0793 in Asian trading on Wednesday, down 0.14% and up from a session low of 1.0782 and off from a high of 1.0809.

The pair sought to test technical support at 1.0778 and resistance at 1.0802.

The Australian Bureau of Statistics recently reported weak retail sales, which fueled expectations the country's central bank would cut interest rates and sent the currency weakening.

However, the Australian dollar snapped back when the bank said rates were staying put at 4.25%.

The U.S. dollar regained its strength by Wednesday as investors worldwide grew optimistic that Greece was poised to accept terms for bailout money but later decided to replenish dollar stocks to be safe in case of further delays.

The Aussie dollar, meanwhile, was up against the yen and down against its New Zealand counterpart, with AUD/JPY gaining 0.13% to 83.07 and AUD/NZD down 0.14% at 1.2912.

On Wednesday, New Zealand will release unemployment data, while China may release inflation figures.

Japan will release its Economy Watchers Current Index, which measures business sentiment, as well as money supply data.

Canadian housing starts are due for release as are  U.S. crude and gasoline inventory figures.





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