Investing.com - The Australian dollar was higher against its U.S. counterpart on Wednesday, as market sentiment was boosted by comments from the head of the People’s Bank of China on the debt crisis in the euro zone.
AUD/USD hit 1.0756 during late Asian trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.0739, gaining 0.43%.
The pair was likely to find support at 1.0628, Tuesday’s low and a two-week low and resistance at 1.0789, the high of February 10.
Market sentiment was boosted after the Governor of China’s central bank Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The Aussie also found support after data showed that Australian consumer confidence rose by the most in three months in February as two rate cuts by the country’s central bank late last year improved the financial outlook for households.
The Aussie was also higher against the yen, with AUD/JPY adding 0.51% to hit 84.30.
Earlier Wednesday, the Bank of Japan said it would increase the size of its asset-purchase program and set a 1% goal for inflation in an attempt to boost growth after recent data showing that Japan’s economy contracted in the fourth quarter of 2011.
AUD/USD hit 1.0756 during late Asian trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.0739, gaining 0.43%.
The pair was likely to find support at 1.0628, Tuesday’s low and a two-week low and resistance at 1.0789, the high of February 10.
Market sentiment was boosted after the Governor of China’s central bank Zhou Xiaochuan said he believes the euro zone’s challenges can be solved and that he fully supports measures taken by the European Central Bank during the crisis.
He also said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The Aussie also found support after data showed that Australian consumer confidence rose by the most in three months in February as two rate cuts by the country’s central bank late last year improved the financial outlook for households.
The Aussie was also higher against the yen, with AUD/JPY adding 0.51% to hit 84.30.
Earlier Wednesday, the Bank of Japan said it would increase the size of its asset-purchase program and set a 1% goal for inflation in an attempt to boost growth after recent data showing that Japan’s economy contracted in the fourth quarter of 2011.