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Forex - AUD/USD rises despite downbeat Australian data

Published 06/10/2015, 02:55 AM
Aussie climbs against broadly weaker greenback, despite Westpac report
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Investing.com - The Australian dollar was higher against its U.S. counterpart on Wednesday, despite the release of downbeat consumer sentiment data from Australia, as demand for the greenback broadly weakened.

AUD/USD hit 0.7748 during late Asian trade, the pair's highest since June 4; the pair subsequently consolidated at 0.7719, gaining 0.39%.

The pair was likely to find support at 0.7636, the session low and resistance at 0.7789, the high of June 4.

In a report, the Westpac Banking Corporation said consumer sentiment in Australia dropped 6.9% this month, after a 6.4% increase the previous month.

Separately, Reserve Bank of Australia Governor Glenn Stevens signaled the possibility of further interest rate cuts in the future but added that policymakers should not expect too much from monetary policy, warning that it could lead to "much bigger problems" for the economy.

Mr. Stevens was speaking at the Economic Society of Australia, in Melbourne.

Meanwhile, market participants continued to cash-in on the greenback's recent rally after an above forecast U.S. jobs report on Friday underlined expectations that the Fed could start to raise rates at its September meeting.

The Aussie was also higher against the euro, with EUR/AUD shedding 0.29% to 1.4627.

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