Investing.com - The Australian dollar was steady against its U.S. counterpart on Wednesday, hovering near four-month highs as markets continued to focus on U.S. budget talks amid growing fears of a potential sovereign default.
AUD/USD hit 0.9544 during late Asian trade, the session high; the pair subsequently consolidated at 0.9532, inching 0.06% higher.
The pair was likely to find support at 0.9435, the low of October 14 and resistance at 0.9642, the high of June 17.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
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.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The Aussie was lower against the New Zealand dollar with AUD/NZD shedding 0.41%, to hit 1.1331.
Also Wednesday, official data showed that consumer price inflation in New Zealand rose 0.9% in the thrid quarter, exceeding expectations for a 0.8% increase, after a 0.2% uptick in the three months to June.
AUD/USD hit 0.9544 during late Asian trade, the session high; the pair subsequently consolidated at 0.9532, inching 0.06% higher.
The pair was likely to find support at 0.9435, the low of October 14 and resistance at 0.9642, the high of June 17.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
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.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
The Aussie was lower against the New Zealand dollar with AUD/NZD shedding 0.41%, to hit 1.1331.
Also Wednesday, official data showed that consumer price inflation in New Zealand rose 0.9% in the thrid quarter, exceeding expectations for a 0.8% increase, after a 0.2% uptick in the three months to June.