Forex - AUD/USD higher as market sentiment improves

Published 02/13/2012, 02:57 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar rose against its U.S. counterpart on Monday, as sentiment improved after the approval by Greece’s parliament of a new austerity bill, easing concerns over an imminent default.

AUD/USD hit 1.0754 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0752, gaining 0.73%.

The pair was likely to find support at 1.0639, the low of February 10 and resistance at 1.0821, the high of February 7.

Sentiment was boosted after Greek lawmakers approved on Sunday a set of spending and wage cuts needed to secure the country’s EUR130 billion bailout package and avoid a sovereign debt default.

Along with the parliamentary approval, Greece must find a further EUR325 million of spending cuts and political assurances must be given that the plan will be implemented, in order to gain approval from global lenders.

Euro zone finance ministers are scheduled to meet later this week to discuss the approval of Greece’s second bailout.

In Australia, official data showed earlier that home loans rose more-than-expected in December, climbing 2.3% after a 1.8% rise the previous month.

Analysts had expected home loans to rise 1.9% in December.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.24%, to hit 1.2336.

Also Monday, preliminary government data showed that Japan’s gross domestic product fell more-than-expected in the fourth quarter, ticking down 0.6% after a 1.4% rise the previous quarter.

Analysts had expected Japan’s GDP to fall 0.3% in the fourth quarter.
Japan is Australia’s biggest export partner.


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