Forex - AUD/USD jumps higher on RBA minutes

Published 07/16/2013, 02:51 AM
Updated 07/16/2013, 02:55 AM
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Investing.com - The Australian dollar jumped higher against its U.S. counterpart on Tuesday, boosted by comments by the Reserve Bank of Australia, while the greenback remained under pressure ahead of Federal Reserve Chairman Ben Bernanke's testimony to Congress on Wednesday.

AUD/USD hit 0.9194 during late Asian trade, the pair's highest since July 11; the pair subsequently consolidated at 0.9182, jumping 0.92%.

The pair was likely to find support at 0.9036, Monday's low and resistance at 0.9306, the high of July 11.

The minutes of the RBA's latest policy meeting showed that policymakers believe the current stance of the bank's policy to be appropriate, sending the Aussie higher.

The RBA also said the inflation outlook was “slightly higher” due to the Aussie’s recent drop.

Meanwhile, investors were awaiting Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.

The greenback fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.

The Aussie was higher against the euro with EUR/AUD retreating 0.79%, to hit 1.4244.

Later in the day, the U.S. was to release official data on consumer price inflation and a report on industrial production.


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