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Forex - AUD/USD hits new 26-month high after weak U.S. data

Published 09/28/2010, 10:43 AM
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Investing.com – The Australian dollar surged to a fresh 26-month high against its U.S. counterpart on Tuesday, after disappointing U.S. data on house prices and consumer sentiment.

AUD/USD hit 0.9648 during European afternoon trade, the pair's highest since July 23, 2008; the pair subsequently consolidated at 0.9646, gaining 0.39%.

The pair was likely to find support at 0.9462, last Friday's low and resistance at 0.9849, the high of July 15, 2008.
Earlier in the day, the Conference Board said its index of U.S. consumer sentiment fell more-than-expected in September, falling to 48.5 after rising to a revised 53.2 in August. Analysts had expected the index to decline to 52.9 in September.

Commenting on the report, Lynn Franco, Director of The Conference Board Consumer Research Center said, "Overall, consumers’ confidence in the state of the economy remains quite grim.

Elsewhere, a separate report showed that U.S. house prices fell less-than-expected in July, remaining close to recent lows.

Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.32% to hit 1.4047.

Later in the day, Australia was to publish an index of its leading economic indicators.

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