Investing.com – The Australian dollar soared to a fresh 26-month high against its U.S. counterpart on Wednesday, as commodity linked currencies were boosted by broad weakness in the U.S. dollar.
AUD/USD hit 0.9781 during European morning trade, the pair’s highest since July 22, 2008; the pair subsequently consolidated at 0.9754, gaining 0.38%.
The pair was likely to find support at 0.9541, Tuesday’s low and short-term resistance at 0.9849, the high of July 15, 2008.
Earlier in the day, Reserve Bank of Australia policy board member Graham Kraehe said that the bank still has a bias toward raising interest rates but will need to be more confident that the global economy will hold up before it tightens further.
"The message that we put out in the announcement was pretty clear, that there is a bias towards tightening but there is a risk of an adjustment overseas, and we want to be pretty sure about that," Mr. Kraehe said.
On Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged for a fifth-straight month, contrary to expectations of an increase.
The Aussie was also up against the euro, with EUR/AUD shedding 0.27% to hit 1.4201.
Later in the day, the U.S. was to release ADP non-farm payrolls data.
AUD/USD hit 0.9781 during European morning trade, the pair’s highest since July 22, 2008; the pair subsequently consolidated at 0.9754, gaining 0.38%.
The pair was likely to find support at 0.9541, Tuesday’s low and short-term resistance at 0.9849, the high of July 15, 2008.
Earlier in the day, Reserve Bank of Australia policy board member Graham Kraehe said that the bank still has a bias toward raising interest rates but will need to be more confident that the global economy will hold up before it tightens further.
"The message that we put out in the announcement was pretty clear, that there is a bias towards tightening but there is a risk of an adjustment overseas, and we want to be pretty sure about that," Mr. Kraehe said.
On Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged for a fifth-straight month, contrary to expectations of an increase.
The Aussie was also up against the euro, with EUR/AUD shedding 0.27% to hit 1.4201.
Later in the day, the U.S. was to release ADP non-farm payrolls data.