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Forex - AUD/USD edges higher, focus on Greece

Published 02/28/2012, 03:00 AM
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Investing.com - The Australian dollar edged higher against its U.S. counterpart on Tuesday, as sentiment improved after German lawmakers approved a second Greek bailout although concerns over the country’s debt woes remained.

AUD/USD hit 1.0787 during late Asian trade, the pair’s highest since February 20; the pair subsequently consolidated at 1.0774, adding 0.15%.

The pair was likely to find support at 1.0701, the low of February 7 and resistance at 1.0823, the high of February 9.

Germany’s parliament approved a EUR130 bailout package for Greece on Monday as German Chancellor Angela Merkel warned that pushing Athens out of the euro would risk “incalculable” damage.

But sentiment remained under pressure after Standard & Poor's cut Greece’s long term credit rating to 'selective default', following the government's decision to add "collective action clauses" to its bonds. These clauses compel bondholders to take part in debt restructuring if they refuse to accept a voluntary writedown on their holdings.

Elsewhere, official data showed that retail sales in Japan rose unexpectedly in January, climbing 1.9% after a 2.5% rise the previous month.

Japan is Australia’s biggest export partner.

The Aussie was lower against the euro with EUR/AUD rising 0.16%, to hit 1.2475.

Later in the day, the U.S. was to produce official data on durable goods orders, as well as industry data on house price inflation and consumer confidence.


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