Investing.com - The Australian dollar rose to a three-week high against its U.S. counterpart on Wednesday, as risk sentiment strengthened ahead of the European Central Bank’s liquidity operation later in the day.
AUD/USD hit 1.0823 during late Asian trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.0814, rising 0.44%.
The pair was likely to find support at 1.0728, Tuesday’s low and resistance at 1.0844, the high of February 8.
Sentiment improved as markets awaited the results of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.
The Aussie also found support after official data showed earlier that retail sales in Australia rose 0.3% in January, in line with expectations, after a 0.1% decline the previous month.
Meanwhile, separate reports showed that construction work done in Australia fell 4.6% in the fourth quarter, far more than expectations for a 0.8% decline, while private sector credit rose less-than-expected in January, ticking up 0.2% after a 0.3% rise the previous month.
The data came after a report by the Housing Industry Association showed that Australian new home sales dropped 7.3% in January after a 4.9% fall the previous month.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.41%, to hit 1.2449.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, followed by data on manufacturing activity in the Chicago area.
Federal Reserve Chairman Ben Bernanke was also due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
AUD/USD hit 1.0823 during late Asian trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.0814, rising 0.44%.
The pair was likely to find support at 1.0728, Tuesday’s low and resistance at 1.0844, the high of February 8.
Sentiment improved as markets awaited the results of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.
The Aussie also found support after official data showed earlier that retail sales in Australia rose 0.3% in January, in line with expectations, after a 0.1% decline the previous month.
Meanwhile, separate reports showed that construction work done in Australia fell 4.6% in the fourth quarter, far more than expectations for a 0.8% decline, while private sector credit rose less-than-expected in January, ticking up 0.2% after a 0.3% rise the previous month.
The data came after a report by the Housing Industry Association showed that Australian new home sales dropped 7.3% in January after a 4.9% fall the previous month.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.41%, to hit 1.2449.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, followed by data on manufacturing activity in the Chicago area.
Federal Reserve Chairman Ben Bernanke was also due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.