Forex - AUD/USD revisits 2-year high after RBA Governor comments

Published 09/20/2010, 07:11 AM
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Investing.com – The Australian dollar revisited Friday's 2-year high against its U.S. counterpart on Monday, after the Reserve Bank of Australia's governor signaled that interest rates could rise further this year.

AUD/USD hit 0.9468 during European morning trade, the pair's highest since last Friday; the pair consolidated at 0.9444, surging 0.87%.

The pair was likely to find support at 0.9350, last Friday's low and resistance at 0.9468.

Earlier Monday, RBA governor Glenn Stevens indicated that the bank may increase interest rates further this year, in an effort to cool the rapidly growing Australian economy, in the midst of a mining and energy boom.

He said the global economy was likely experience reasonable growth over the coming year but noted some risks to the upbeat outlook, including a sharper-than-expected slowdown in China or a return to crisis in global financial markets.

“If downside possibilities do not materialize, the task ahead is likely to be one of managing a fairly robust upswing,” said Stevens.

The Aussie was also up against the euro, with EUR/USD shedding 0.49% to hit 1.3867.

Later in the day, the U.S. was to publish industry data on home sales.

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