Forex - AUD/USD hits 3-day high on E.Z. bailout reports

Published 09/27/2011, 03:04 AM
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Investing.com - The Australian dollar hit a three-day high against its U.S. counterpart on Tuesday, as reports on a plan to enhance euro zone bailout funds boosted risk sentiment.

AUD/USD hit 0.9905 during late Asian trade, the pair's highest since September 22; the pair subsequently consolidated at 0.9866, climbing 0.33%.

The pair was likely to find support at 0.9690, the low of September 22 and resistance at 1.0069, the high of March 21.

Market sentiment strengthened on reports that euro zone finance officials are considering ways to beef up bailout funds, easing concerns over a potential contagion of debt struggles in the single currency bloc.

On Monday, a senior European Central Bank policymaker said the funds in the EUR440 billion European Financial Stability Facility could be used as collateral to borrow from the ECB, making more money available.

Meanwhile, the Aussie was up against the euro with EUR/AUD shedding 0.39%, to hit 1.3711.

Later in the day, a U.S. report on consumer confidence was to be released. Federal Open Market Committee member Richard Fisher was also due to speak on Tuesday.

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