Investing.com – The Australian dollar edged higher, re-approaching a 26-year high against its U.S. counterpart on Wednesday, after minutes of the last meeting of Federal Reserve policy makers revealed that many believed fresh stimulus measures could be necessary.
AUD/USD hit 0.9905 during European afternoon trade, the pair’s highest since October 11; the pair subsequently consolidated at 0.9877, gaining 0.14%.
The pair was likely to find support at 0.9708, the high of October 8 and resistance at 0.9917, the high of October 7 and a 26-year high.
Late Tuesday, data showed that Australian consumer sentiment rebounded in October. In a report, Westpac Bank said that its index of consumer sentiment rose 3.3% to 117, after a 5% drop in September. The report said that a gauge of whether it is a good or bad time to buy major households items rose 9.9%, the biggest gain among five components in the index.
Commenting on the report, Bill Evans, Westpac’s chief economist said, “The decision by the Reserve Bank to keep rates on hold at the October board meeting would have buoyed consumers”. He added that there is “evidence of improving employment conditions with a further 49,500 new jobs being reported for September”.
The Aussie was also up against the euro, with EUR/AUD shedding 0.20% to hit 1.4091.
On Tuesday, the minutes of the September 21 meeting of Federal Open Market Committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.
AUD/USD hit 0.9905 during European afternoon trade, the pair’s highest since October 11; the pair subsequently consolidated at 0.9877, gaining 0.14%.
The pair was likely to find support at 0.9708, the high of October 8 and resistance at 0.9917, the high of October 7 and a 26-year high.
Late Tuesday, data showed that Australian consumer sentiment rebounded in October. In a report, Westpac Bank said that its index of consumer sentiment rose 3.3% to 117, after a 5% drop in September. The report said that a gauge of whether it is a good or bad time to buy major households items rose 9.9%, the biggest gain among five components in the index.
Commenting on the report, Bill Evans, Westpac’s chief economist said, “The decision by the Reserve Bank to keep rates on hold at the October board meeting would have buoyed consumers”. He added that there is “evidence of improving employment conditions with a further 49,500 new jobs being reported for September”.
The Aussie was also up against the euro, with EUR/AUD shedding 0.20% to hit 1.4091.
On Tuesday, the minutes of the September 21 meeting of Federal Open Market Committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.