Investing.com – The Australian dollar was up against its U.S. counterpart on Monday, re-approaching parity after the pair jumped to a 6-day high.
AUS/USD hit 0.9972 during European afternoon trade, the pair’s highest since October 15; the pair subsequently consolidated at 0.9946, jumping 1.19%.
The pair was likely to find support at 0.9757, last Friday’s low and resistance at 1.0000, the high of October 15 and a record high.
Earlier in the day, Governor of the Reserve Bank of Australia Glenn Stevens said flexible exchange rates alone won’t spur growth or rebalance the global economy.
“We should be realistic about how much difference exchange rate flexibility would make to the unbalanced nature of growth in the global economy,” he said. “It is definitely part of the answer (and it is surely in the interests of the countries with closely managed rates to accept more flexibility), but it is no panacea.”
Also Monday, official data showed that Australian producer price inflation rose more-than-expected in the third quarter. In a report, the Australian Bureau of Statistics said that PPI rose to a seasonally adjusted 1.30%, from 0.30% in the preceding quarter. Analysts had expected PPI to rise 0.60% in the third quarter.
The Aussie was also up against the euro, with EUR/AUD shedding 0.76% to hit 1.4093.
Later in the day, the U.S. was to release industry data on existing home sales.
AUS/USD hit 0.9972 during European afternoon trade, the pair’s highest since October 15; the pair subsequently consolidated at 0.9946, jumping 1.19%.
The pair was likely to find support at 0.9757, last Friday’s low and resistance at 1.0000, the high of October 15 and a record high.
Earlier in the day, Governor of the Reserve Bank of Australia Glenn Stevens said flexible exchange rates alone won’t spur growth or rebalance the global economy.
“We should be realistic about how much difference exchange rate flexibility would make to the unbalanced nature of growth in the global economy,” he said. “It is definitely part of the answer (and it is surely in the interests of the countries with closely managed rates to accept more flexibility), but it is no panacea.”
Also Monday, official data showed that Australian producer price inflation rose more-than-expected in the third quarter. In a report, the Australian Bureau of Statistics said that PPI rose to a seasonally adjusted 1.30%, from 0.30% in the preceding quarter. Analysts had expected PPI to rise 0.60% in the third quarter.
The Aussie was also up against the euro, with EUR/AUD shedding 0.76% to hit 1.4093.
Later in the day, the U.S. was to release industry data on existing home sales.