Investing.com - The Australian dollar was higher against its U.S. counterpart on Tuesday, after the formation of a new government in Italy boosted sentiment, but gains were capped by downbeat Australian private sector credit data.
AUD/USD hit 1.0373 during late Asian trade, the pair's highest since April 16; the pair subsequently consolidated at 1.0362, adding 0.10%.
The pair was likely to find support at 1.0308, the low of April 16 and resistance at 1.0424, the high of April 8.
Sentiment remained supported after Italy’s new government was sworn in over the weekend, ending two months of political uncertainty, with Prime Minister Enrico Letta pledging to lower taxes in order to spur growth.
In Australia, official data earlier showed that private sector credit rose 0.2% in March, below expectations for a 0.3% gain, after a 0.2% increase the previous month.
Investors were also looking ahead to the outcome of the Federal Reserve’s policy meeting on Wednesday for further cues on the direction of monetary policy.
The Aussie was higher against the New Zealand dollar with AUD/NZD edging up 0.15%, to hit 1.2102.
Also Tuesday, the ANZ business confidence index for New Zealand fell to 32.30 in April, from a reading of 34.60 the previous month.
A separate report showed that building consents in New Zealand dropped 9.1% in March, disappointing expectations for a 2.0% rise, after an increase of 4.4% the previous month.
Later in the day, the U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.
AUD/USD hit 1.0373 during late Asian trade, the pair's highest since April 16; the pair subsequently consolidated at 1.0362, adding 0.10%.
The pair was likely to find support at 1.0308, the low of April 16 and resistance at 1.0424, the high of April 8.
Sentiment remained supported after Italy’s new government was sworn in over the weekend, ending two months of political uncertainty, with Prime Minister Enrico Letta pledging to lower taxes in order to spur growth.
In Australia, official data earlier showed that private sector credit rose 0.2% in March, below expectations for a 0.3% gain, after a 0.2% increase the previous month.
Investors were also looking ahead to the outcome of the Federal Reserve’s policy meeting on Wednesday for further cues on the direction of monetary policy.
The Aussie was higher against the New Zealand dollar with AUD/NZD edging up 0.15%, to hit 1.2102.
Also Tuesday, the ANZ business confidence index for New Zealand fell to 32.30 in April, from a reading of 34.60 the previous month.
A separate report showed that building consents in New Zealand dropped 9.1% in March, disappointing expectations for a 2.0% rise, after an increase of 4.4% the previous month.
Later in the day, the U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.