Investing.com - The Australian dollar rose against its U.S. counterpart on Wednesday, following upbeat consumer sentiment data from Australia, but gains were limited as concerns over the handling of the debt crisis in the euro zone continued to weigh.
AUD/USD hit 1.0220 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0226, rising 0.34%.
The pair was likely to find support at 1.0132, the low of June 20 and resistance at 1.0295, the high of July 3.
A report by the Westpac Banking Corporation showed earlier that consumer sentiment in Australia improved by 3.7% in July, following a 0.3% rise the previous month.
A separate report showed that home loans in Australia fell unexpectedly in May, dropping 1.2% after a 0.5% rise the previous month. Analysts had expected home loans to rise 0.8% in May.
Meanwhile, risk sentiment remained under pressure after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
The latest meeting of euro zone finance ministers also dampened investor confidence. While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.21%, to hit 1.1996.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.
AUD/USD hit 1.0220 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0226, rising 0.34%.
The pair was likely to find support at 1.0132, the low of June 20 and resistance at 1.0295, the high of July 3.
A report by the Westpac Banking Corporation showed earlier that consumer sentiment in Australia improved by 3.7% in July, following a 0.3% rise the previous month.
A separate report showed that home loans in Australia fell unexpectedly in May, dropping 1.2% after a 0.5% rise the previous month. Analysts had expected home loans to rise 0.8% in May.
Meanwhile, risk sentiment remained under pressure after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
The latest meeting of euro zone finance ministers also dampened investor confidence. While the ministers agreed to grant Spain an extra year through 2014 to reach its deficit reduction targets, they did not come up with a final figure for aid for the country's ailing banks but said some 30 billion euros would be available by the end of this month.
Markets were also eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.21%, to hit 1.1996.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.