Investing.com - The Australian dollar rose to nearly four-month highs against its U.S. counterpart on Tuesday, supported by the minutes of the Reserve Bank of Australia's latest policy meeting, while markets hoped for progress on the U.S. budget front.
AUD/USD hit 0.9539 during late Asian trade, the pair's highest since June 19; the pair subsequently consolidated at 0.9537, gaining 0.52%.
The pair was likely to find support at 0.9435, Monday's low and resistance at 0.9642, the high of June 17.
The minutes of the RBA's October policy meeting showed that the bank was in no hurry to cut interest rates further, saying that previous rate cuts are affecting the nation's economy.
Separately, official data showed that new motor vehicle sales in Australia fell 0.1% in September, following a downwardly revised 0.7% increase the previous month.
Meanwhile, U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The Aussie was higher against the euro with EUR/AUD shedding 0.47%, to hit 1.4224.
Later in the day, the U.S. was to release a report on manufacturing activity in the Empire state.
AUD/USD hit 0.9539 during late Asian trade, the pair's highest since June 19; the pair subsequently consolidated at 0.9537, gaining 0.52%.
The pair was likely to find support at 0.9435, Monday's low and resistance at 0.9642, the high of June 17.
The minutes of the RBA's October policy meeting showed that the bank was in no hurry to cut interest rates further, saying that previous rate cuts are affecting the nation's economy.
Separately, official data showed that new motor vehicle sales in Australia fell 0.1% in September, following a downwardly revised 0.7% increase the previous month.
Meanwhile, U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The Aussie was higher against the euro with EUR/AUD shedding 0.47%, to hit 1.4224.
Later in the day, the U.S. was to release a report on manufacturing activity in the Empire state.