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Forex - AUD/USD gains on talk RBA will leave rates unchanged

Published 08/06/2012, 10:41 PM
Updated 08/06/2012, 10:42 PM
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Investing.com - The Australian dollar traded higher against its U.S. counterpart Tuesday on sentiment the Reserve Bank of Australia will leave benchmark interest rates unchanged at 3.50%.

In Asian trading on Tuesday, AUD/USD hit 1.0584, up 0.13%, up from a session low of 1.0554 and off from a high of 1.0588.

The pair was likely to test support at 1.0554, the earlier low, and resistance at 1.0593, the high on Aug. 6.

The Australian currency rose against the dollar on sentiment rates will remain unchanged.

The U.S. dollar, meanwhile, saw downward pressure on sentiment the Federal Reserve will likely roll out a new round of quantitative easing, which are bond purchases from banks that pump liquidity into the economy, weakening the dollar in the process to spur recovery.

U.S. jobs data surprised on the upside on Friday.

The U.S. economy added a net 163,000 net nonfarm payrolls in July, according to the Bureau of Labor Statistics, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.

However, separate government data showed that households reported that 195,000 fewer people were employed in July, which rekindled expectations for Federal Reserve intervention.

The Australian dollar, meanwhile was up against the euro and down against the yen, with EUR/AUD down 0.15% at 1.1717 and AUD/JPY up 0.15% at 82.83.

Later Tuesday, Federal Reserve Chairman Ben Bernanke is to speak at an event in Washington, D.C.

Australia is release data on home loans.








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