Investing.com - The Australian dollar edged higher against its U.S. counterpart on Wednesday, but remained under pressure after Cyprus’s parliament rejected a proposed bank deposit tax, which formed part of a EUR10 billion international bailout deal.
AUD/USD hit 1.0388 during late Asian trade, the session high; the pair subsequently consolidated at 1.0380, adding 0.09%.
The pair was likely to find support at 1.0344, the low of March 18 and resistance at 1.0414, the high of March 15 and a five-week high.
Cyprus’s President Nicos Anastasiades called an emergency meeting with political leaders to look at alternatives after parliament rejected the terms of the bailout agreement.
Following the vote, the European Central Bank said it will provide liquidity to Cypriot banks within existing rules.
German Finance Minister Wolfgang Schaeuble warned Cyprus that its banks might never be able to reopen if it rejected the bailout.
Sentiment improved amid growing expectations that the European Union will renegotiate a deal with Cyprus to keep the country in the euro zone.
The Aussie was higher against the New Zealand dollar with AUD/NZD rising 0.35%, to hit 1.2618.
Also Wednesday, official data showed that New Zealand's current account deficit narrowed less-than-expected in the fourth quarter, hitting NZD3.26 billion from a deficit of NZD4.39 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to NZD2.97 billion in the last quarter.
Investors were looking ahead to the outcome of the Federal Reserve’s policy meeting later in the trading day, after data last week showing that U.S. inflation was contained left the way clear for the bank to continue its asset purchase program.
AUD/USD hit 1.0388 during late Asian trade, the session high; the pair subsequently consolidated at 1.0380, adding 0.09%.
The pair was likely to find support at 1.0344, the low of March 18 and resistance at 1.0414, the high of March 15 and a five-week high.
Cyprus’s President Nicos Anastasiades called an emergency meeting with political leaders to look at alternatives after parliament rejected the terms of the bailout agreement.
Following the vote, the European Central Bank said it will provide liquidity to Cypriot banks within existing rules.
German Finance Minister Wolfgang Schaeuble warned Cyprus that its banks might never be able to reopen if it rejected the bailout.
Sentiment improved amid growing expectations that the European Union will renegotiate a deal with Cyprus to keep the country in the euro zone.
The Aussie was higher against the New Zealand dollar with AUD/NZD rising 0.35%, to hit 1.2618.
Also Wednesday, official data showed that New Zealand's current account deficit narrowed less-than-expected in the fourth quarter, hitting NZD3.26 billion from a deficit of NZD4.39 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to NZD2.97 billion in the last quarter.
Investors were looking ahead to the outcome of the Federal Reserve’s policy meeting later in the trading day, after data last week showing that U.S. inflation was contained left the way clear for the bank to continue its asset purchase program.