Forex - AUD/USD rises amid fresh euro zone hopes

Published 08/20/2012, 02:40 AM
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Investing.com - The Australian dollar rose against its U.S. counterpart on Monday, as risk sentiment slightly improved amid hopes for progress in tackling the euro zone’s debt crisis, while investors eyed the release of U.S. data later in the week.

AUD/USD hit 1.0456 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0450, rising 0.31%.

The pair was likely to find support at 1.0383, the low of July 27 and resistance at 1.0513, the high of August 15.

The risk-related Aussie found support ahead of a series of euro zone meetings this week to discuss measures to stem the region’s debt crisis.

Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, is expected in Athens on Wednesday to discuss Greek Prime Minister Antonis Samaras’ request for a two-year extension for the country’s fiscal adjustment program.

Samaras is expected in Berlin and Paris at the end of the week, after French President Francois Hollande and German Chancellor Angela Merkel meet in the German capital on Thursday.

Sentiment had briefly strengthened last week after German Chancellor Angela Merkel backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.

Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.

German magazine Spiegel reported on Sunday that the ECB may set limits on yields of euro-area sovereign debt by pledging unlimited bond purchases, at the bank’s next policy meeting in September.

Elsewhere, the Aussie was higher against the euro with EUR/AUD falling 0.14%, to hit 1.1821.

Separately, markets were eyeing more U.S. data, after a string of positive reports last week dampened expectations for fresh stimulus measures by the Federal Reserve.


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