Investing.com – The Australian dollar erased early losses against its U.S. counterpart on Tuesday, moving higher to test a key resistance at 0.9493 after better-than-expected U.S. housing data.
AUD/USD hit 0.9494 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 0.9492, gaining 0.21%.
The pair was likely to find support at 0.9360, Monday's low and resistance at 0.9493, Monday's high and a 2-year high.
Earlier in the day, official U.S. data showed that building permits and housing starts rose more-than-expected in August.
In a report, the Census Bureau said the number of housing starts rose to a seasonally adjusted 0.60 million in August, up from a revised 0.54 million in July. Analysts had expected housing starts to rise to 0.55 million in August.
The report also said that the number of building permits issued in August rose to a seasonally adjusted 0.57 million, up from a revised 0.56 million in July. Analysts had expected building permits to remain unchanged in August.
Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.33% to hit 0.9776.
Earlier in the day, minutes of the most recent meeting of the Reserve Bank of Australia's policy makers indicated that the bank would raise its benchmark interest rate further this year, in an effort to cool the rapidly growing Australian economy, in the midst of a mining and energy boom.
AUD/USD hit 0.9494 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 0.9492, gaining 0.21%.
The pair was likely to find support at 0.9360, Monday's low and resistance at 0.9493, Monday's high and a 2-year high.
Earlier in the day, official U.S. data showed that building permits and housing starts rose more-than-expected in August.
In a report, the Census Bureau said the number of housing starts rose to a seasonally adjusted 0.60 million in August, up from a revised 0.54 million in July. Analysts had expected housing starts to rise to 0.55 million in August.
The report also said that the number of building permits issued in August rose to a seasonally adjusted 0.57 million, up from a revised 0.56 million in July. Analysts had expected building permits to remain unchanged in August.
Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.33% to hit 0.9776.
Earlier in the day, minutes of the most recent meeting of the Reserve Bank of Australia's policy makers indicated that the bank would raise its benchmark interest rate further this year, in an effort to cool the rapidly growing Australian economy, in the midst of a mining and energy boom.