Forex - AUD/USD higher as risk appetite recovers

Published 01/31/2012, 03:12 AM
AUD/USD
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AUD/JPY
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Investing.com - The Australian dollar was higher against its U.S. counterpart on Tuesday, as market sentiment was buoyed by signs of progress on a debt restructuring deal for Greece.

AUD/USD hit 1.0651 during late Asian trade, the session high; the pair subsequently consolidated at 1.0648, gaining 0.47%.

The pair was likely to find support at 1.0525, Monday’s low and resistance at 1.0669, last Friday’s high and a three-month high.

Speaking at a European Union summit in Brussels, Greek Prime Minister Lucas Papademos said "significant progress” had been made in debt-swap talks with the country’s private creditors, boosting hopes that a deal can be finalized before the end of the week.

Meanwhile, EU leaders agreed on its fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone.

Earlier Tuesday, a report showed that Australian business confidence edged slightly higher in December, indicating that two successive rate cuts by the country’s central bank have supported a recovery in economic sentiment.

The Aussie was also higher against the yen, with AUD/JPY adding 0.29% to hit 81.15.

Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country is also to publish a report on consumer confidence.

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