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Forex - AUD/USD rises to 1-month highs after Stevens comments

Published 04/28/2015, 02:51 AM
Aussie gains ground vs. greenback on Stevens remarks
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar rose to one-month highs against its U.S. counterpart on Tuesday, following comments by Reserve Bank of Australia Governor Glenn Stevens and as sentiment on the greenback remained vulnerable after recent downbeat U.S. data.

AUD/USD hit 0.7882 during late Asian trade, the pair's highest since March 26; the pair subsequently consolidated at 0.7875, rising 0.23%.

The pair was likely to find support at 0.7789, Monday's low and resistance at 0.7940, the high of March 24.

RBA Governor Glenn Stevens said earlier that he had "no comments to offer on monetary policy ahead of next week's meeting of the Reserve Bank Board."

Stevens did signal however that the RBA is now viewing the risks to the economy that stem from low interest rates.

Meanwhile, the greenback remained under pressure after the Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data led investors to push back expectations on the timing of an initial rate hike by the Fed.

The Aussie was also higher against the euro, with EUR/AUD sliding 0.35% to 1.3812.

Later in the day, the U.S. was to release private sector data on consumer confidence.

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