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Forex - AUD/USD edges higher on U.S. debt deal hopes

Published 07/20/2011, 03:04 AM
AUD/USD
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AUD/JPY
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Investing.com – The Australian dollar edged higher against its U.S. counterpart on Wednesday, as market sentiment received a lift after President Barack Obama supported a bi-partisan plan to avoid a U.S. debt default.

AUD/USD hit 1.0750 during late Asian trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.0737, inching up 0.03%.

The pair was likely to find support at 1.0598, Tuesday’s low and short-term resistance at 1.0787, the high of July 8.

On Tuesday, President Obama said there had been “some progress” in talks with lawmakers on raising the USD14.3 trillion U.S. debt limit, boosting optimism that a deal would be reached before the August 2 deadline.

Elsewhere, a report earlier showed that an index of leading Australian economic indicators fell in May, as consumers cut back spending.

The Westpac-Melbourne Institute Leading Index dipped 0.1% in May, recording growth of just 1.6%.

Meanwhile, the Australian dollar was down against the yen, with AUD/JPY shedding 0.24% to hit 84.75.

Later in the day, the U.S. was to publish official data on existing home sales.

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