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Forex - AUD/USD steady as RBA rate view supports

Published 03/29/2011, 04:12 AM
AUD/USD
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AUD/JPY
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Investing.com – The Australian dollar was virtually unchanged against its U.S. counterpart on Tuesday, trading slightly short of Monday’s all-time high, supported by the view that the Reserve Bank of Australia will keep rates on hold for now.

AUD/USD hit 1.0272 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0244, easing up 0.01%.

The pair was likely to find support at 1.0185, Monday’s low and resistance at 1.0313, Monday’s high and a record high.

On Monday, the newly-elected government of New South Wales, Australia’s largest state, claimed the state is facing a far bigger budget deficit than earlier reported.

However, ratings agencies have said the situation would not change the rating outlook for the state. Fitch Ratings said New South Wales had room to deal with a possible AUD4.5 billion shortfall in the state's budget.

Meanwhile, the Aussie was slightly higher against the yen, with AUD/JPY easing up 0.09% to hit 83.75.

Earlier in the day, industry data showed that Australian new home sales rose slightly in February but growth remained weak, as the pace of the housing market slowed. The Housing Industry Association said new home sales rose 0.6%, following a 2.5% rise in January.

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