Investing.com - The Australian dollar rallied to a six-month high against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia unexpectedly left its benchmark interest rate unchanged, overshadowing concerns over a Greek default.
AUD/USD hit 1.0815 during late Asian trade, the pair’s highest since August 2; the pair subsequently consolidated at 1.0809, climbing 0.89%.
The pair was likely to find support at 1.0682, Monday’s low and resistance at 1.0874, the high of July 22.
The RBA kept interest rates unchanged at 4.25% earlier, confounding expectations for a 0.25% cut, but the bank left the door open to further monetary easing if domestic demand weakened further.
Commenting on the decision, RBA Governor Glenn Stevens said “financial market sentiment, though remaining skittish, has generally improved since early December.”
Meanwhile, Greek Prime Minister Lucas Papademos was to meet with coalition leaders later in the day to discuss the implementation of additional fiscal measures needed in order to secure a second bailout, after failing to strike a deal on Monday.
European Union officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Elsewhere, the Aussie was also higher against the euro with EUR/AUD shedding 0.63%, to hit 1.2164.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to testify on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.
AUD/USD hit 1.0815 during late Asian trade, the pair’s highest since August 2; the pair subsequently consolidated at 1.0809, climbing 0.89%.
The pair was likely to find support at 1.0682, Monday’s low and resistance at 1.0874, the high of July 22.
The RBA kept interest rates unchanged at 4.25% earlier, confounding expectations for a 0.25% cut, but the bank left the door open to further monetary easing if domestic demand weakened further.
Commenting on the decision, RBA Governor Glenn Stevens said “financial market sentiment, though remaining skittish, has generally improved since early December.”
Meanwhile, Greek Prime Minister Lucas Papademos was to meet with coalition leaders later in the day to discuss the implementation of additional fiscal measures needed in order to secure a second bailout, after failing to strike a deal on Monday.
European Union officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Elsewhere, the Aussie was also higher against the euro with EUR/AUD shedding 0.63%, to hit 1.2164.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to testify on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.