Investing.com – The Australian dollar rose against its U.S. counterpart on Monday, erasing early losses which came on speculation the country's central bank would not raise borrowing costs ahead of a general election set for August 21.
AUD/USD hit 0.8719 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 0.8688, gaining 0.04%.
The pair was likely to find support at 0.8621, the low of July 8 and resistance at 0.8837, last Friday's high.
Earlier in the day, Prime Minister Julia Gillard called an election for Aug. 21, sparking speculation the central bank will refrain from raising borrowing costs next month. On Tuesday, the Reserve Bank of Australia was set to release minutes of a July 6 monetary policy committee meeting when it said monetary policy was “appropriate.”
Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.32% to hit 1.4928.
Later in the day, the U.S. was due to publish data on single-family home sales.
AUD/USD hit 0.8719 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 0.8688, gaining 0.04%.
The pair was likely to find support at 0.8621, the low of July 8 and resistance at 0.8837, last Friday's high.
Earlier in the day, Prime Minister Julia Gillard called an election for Aug. 21, sparking speculation the central bank will refrain from raising borrowing costs next month. On Tuesday, the Reserve Bank of Australia was set to release minutes of a July 6 monetary policy committee meeting when it said monetary policy was “appropriate.”
Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.32% to hit 1.4928.
Later in the day, the U.S. was due to publish data on single-family home sales.