Investing.com - The Australian dollar erased gains against its U.S. counterpart in quiet trade on Monday, as markets consolidated after Friday’s soft U.S. data and following a speech by Reserve Bank of Australia Governor Glenn Stevens.
AUD/USD pulled back from 1.0619, the pair’s highest since March 9, to hit 1.0584 during late Asian trade, dipping 0.04%.
The pair was likely to find support at 1.0508, Friday’s low and resistance at 1.0662, the high of March 9.
Speaking in Hong Kong, RBA Governor Glenn Stevens said that the euro zone’s debt problems were still a risk to the global economy, but remained upbeat on the outlook for China and the rest of Asia.
Stevens said Australia's overall recent economic performance was "not too bad" despite the pressures of the strong domestic currency, but said that only increased productivity could boost economic growth.
"Monetary policy cannot raise the economy's trend rate of growth," he said.
The Aussie was down against the yen, with AUD/JPY shedding 0.48% to hit 87.91 and was almost unchanged against its New Zealand cousin, with AUD/NZD dipping 0.02% to hit 1.2839.
Earlier Monday, data showed that New Zealand’s Westpac index of consumer sentiment rose to 102.4 in the first quarter from 101.3 in the last three months of 2011.
Consumer confidence remained subdued in the first quarter amid lingering concerns over the outlook for the economy and price increases the report said.
AUD/USD pulled back from 1.0619, the pair’s highest since March 9, to hit 1.0584 during late Asian trade, dipping 0.04%.
The pair was likely to find support at 1.0508, Friday’s low and resistance at 1.0662, the high of March 9.
Speaking in Hong Kong, RBA Governor Glenn Stevens said that the euro zone’s debt problems were still a risk to the global economy, but remained upbeat on the outlook for China and the rest of Asia.
Stevens said Australia's overall recent economic performance was "not too bad" despite the pressures of the strong domestic currency, but said that only increased productivity could boost economic growth.
"Monetary policy cannot raise the economy's trend rate of growth," he said.
The Aussie was down against the yen, with AUD/JPY shedding 0.48% to hit 87.91 and was almost unchanged against its New Zealand cousin, with AUD/NZD dipping 0.02% to hit 1.2839.
Earlier Monday, data showed that New Zealand’s Westpac index of consumer sentiment rose to 102.4 in the first quarter from 101.3 in the last three months of 2011.
Consumer confidence remained subdued in the first quarter amid lingering concerns over the outlook for the economy and price increases the report said.