Forex - AUD/USD hits 6-month high, focus on Greece

Published 02/08/2012, 03:01 AM
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Investing.com - The Australian dollar rose to a six-month high against its U.S. counterpart on Wednesday, amid cautious optimism that Greek coalition leaders were nearing a deal on fresh austerity measures to secure a second bailout.

AUD/USD hit 1.0835 during late Asian trade, the pair’s highest since August 2; the pair subsequently consolidated at 1.0829, rising 0.19%.

The pair was likely to find support at 1.0701, Tuesday’s low and resistance at 1.0888, the high of May 11.

Sentiment found support after a Greek official said late Tuesday the government and international creditors were close to a final draft of an agreement on the terms required for a EUR130 billion rescue package.

After holding talks with the troika, comprising the European Commission, the European Central Bank and the International Monetary Fund, Prime Minister Lucas Papademos was set to meet with coalition leaders later in the day to get consensus approval.

The greenback also came under pressure after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment rate unexpectedly fell to a three-year low.

Elsewhere, the Aussie was higher against the euro with EUR/AUD retreating 0.13%, to hit 1.2252.

Later in the day, the U.S. was to publish a government report on crude oil inventories.


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