Investing.com - The Australian dollar traded higher against its U.S. rival during Tuesday’s Asian session on the back of an impressive showing by gold during Monday’s U.S. session.
In Asian trading Tuesday, AUD/USD rose 0.28% to 0.9276. The pair was likely to find support at 0.9139, the low of July 18 and resistance at 0.9300, the high of July 10.
Although gold traded mostly lower in Asia, the yellow metal surged to 3.04% USD1,332.15 a troy ounce in U.S. trading on Monday. Monday’s performance represented gold’s best intraday run in a year. Physical demand as well as a sanguine view of U.S. monetary policy helped buoy gold.
Stimulus programs such as the Federal Reserve’s monthly USD85 billion bond-buying program weaken the dollar to spur recovery, which makes gold an attractive hedge.Fed Chairman Ben Bernanke has stressed that the U.S. central bank will follow no present timetable to taper such policies.
Gold was also boosted by some tepid U.S. economic data that restored bullion’s safe-haven appeal, at least for one day.
In U.S. economic news out Monday, the National Association of Realtors said existing home sales fell 1.2% to an annual rate of 5.08 million last month. The May number was revised down to 5.14 million. The median home price jumped 13.5% from June 2012, to $214,200. That is the 16th straight month of higher prices.
Australia is one of the world’s largest gold-producing and as such, some traders view the Aussie as a "commodity currency" that often takes its cues from the yellow metal.
Elsewhere, AUD/JPY rose 0.10% to 92.27 while AUD/NZD fell 0.10% to 1.1594.
In Asian trading Tuesday, AUD/USD rose 0.28% to 0.9276. The pair was likely to find support at 0.9139, the low of July 18 and resistance at 0.9300, the high of July 10.
Although gold traded mostly lower in Asia, the yellow metal surged to 3.04% USD1,332.15 a troy ounce in U.S. trading on Monday. Monday’s performance represented gold’s best intraday run in a year. Physical demand as well as a sanguine view of U.S. monetary policy helped buoy gold.
Stimulus programs such as the Federal Reserve’s monthly USD85 billion bond-buying program weaken the dollar to spur recovery, which makes gold an attractive hedge.Fed Chairman Ben Bernanke has stressed that the U.S. central bank will follow no present timetable to taper such policies.
Gold was also boosted by some tepid U.S. economic data that restored bullion’s safe-haven appeal, at least for one day.
In U.S. economic news out Monday, the National Association of Realtors said existing home sales fell 1.2% to an annual rate of 5.08 million last month. The May number was revised down to 5.14 million. The median home price jumped 13.5% from June 2012, to $214,200. That is the 16th straight month of higher prices.
Australia is one of the world’s largest gold-producing and as such, some traders view the Aussie as a "commodity currency" that often takes its cues from the yellow metal.
Elsewhere, AUD/JPY rose 0.10% to 92.27 while AUD/NZD fell 0.10% to 1.1594.