Investing.com - The Australian dollar rallied against its U.S. counterpart on Wednesday, as risk sentiment recovered on reports that France and Germany had agreed on a new euro zone rescue fund deal.
AUD/USD hit 1.0335 during late Asian trade, the pair's highest since October 17; the pair subsequently consolidated at 1.0300, rising 0.37%.
The pair was likely to find support at 1.0117, Tuesday's low and resistance at 1.0440, the high of September 12.
Market sentiment strengthened on Tuesday after The Guardian reported that France and Germany had agreed to enhance the euro zone's bailout fund to EUR2 trillion. The report was not confirmed.
Concerns over the handling of the euro zone debt crisis also eased ahead of the upcoming European summit scheduled on October 23. Though German Chancellor Angela Merkel had previously dismissed any hopes of revealing a definitive solution to the region's financial woes by the end of the week, she acknowledged that the summit will "mark an important step".
Meanwhile, in Australia, the Melbourne Institute said its leading index rose 8% in August, from an upwardly revised 0.6% increase the previous month.
The Aussie was also up against the euro with EUR/AUD slipping 0.03%, to hit 1.3394.
Also Wednesday, Moody's Investors Service downgraded Spain's credit rating for the third time since 2010, to A1 from Aa2.
Later in the day, the U.S. was to release government data on building permits and consumer price inflation.
AUD/USD hit 1.0335 during late Asian trade, the pair's highest since October 17; the pair subsequently consolidated at 1.0300, rising 0.37%.
The pair was likely to find support at 1.0117, Tuesday's low and resistance at 1.0440, the high of September 12.
Market sentiment strengthened on Tuesday after The Guardian reported that France and Germany had agreed to enhance the euro zone's bailout fund to EUR2 trillion. The report was not confirmed.
Concerns over the handling of the euro zone debt crisis also eased ahead of the upcoming European summit scheduled on October 23. Though German Chancellor Angela Merkel had previously dismissed any hopes of revealing a definitive solution to the region's financial woes by the end of the week, she acknowledged that the summit will "mark an important step".
Meanwhile, in Australia, the Melbourne Institute said its leading index rose 8% in August, from an upwardly revised 0.6% increase the previous month.
The Aussie was also up against the euro with EUR/AUD slipping 0.03%, to hit 1.3394.
Also Wednesday, Moody's Investors Service downgraded Spain's credit rating for the third time since 2010, to A1 from Aa2.
Later in the day, the U.S. was to release government data on building permits and consumer price inflation.