Investing.com - The Australian dollar rose against its U.S. counterpart on Wednesday, after positive Australian retail sales data but investors remained cautious amid speculation that world central banks may implement further easing measures following a series of weak economic reports.
AUD/USD hit 1.0320 during late Asian trade, the pair’s highest since May 3; the pair subsequently consolidated at 1.0293, adding 0.12%.
The pair was likely to find support at 1.0168, the low of May 4 and resistance at 1.0383, the high of April 23.
The Aussie rose to a two-month high against the greenback after official data showed that retail sales in Australia rose more-than-expected in May, rising 0.5% after a 0.1% increase the previous month. Analysts had expected retail sales to rise 0.3% in May.
The report came after industry data showed that an index of service sector activity for Australia rose to 48.8 in June from a reading of 43.5 the previous month, remaining in contraction territory for the fifth consecutive month.
Meanwhile, investors were eyeing the outcome of the Bank of England and the European Central Bank’s policy-setting meetings on Thursday, amid growing expectations for further stimulus measures.
Weak data from the U.S. earlier in the week also led to believe that the Federal Reserve may implement a third round of quantitative easing to shore up economic growth, which has been hit by the ongoing debt crisis in the euro zone.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.19%, to hit 1.2239.
Trade volumes were expected to remain light as markets in the U.S. were closed for the Independence Day holiday.
AUD/USD hit 1.0320 during late Asian trade, the pair’s highest since May 3; the pair subsequently consolidated at 1.0293, adding 0.12%.
The pair was likely to find support at 1.0168, the low of May 4 and resistance at 1.0383, the high of April 23.
The Aussie rose to a two-month high against the greenback after official data showed that retail sales in Australia rose more-than-expected in May, rising 0.5% after a 0.1% increase the previous month. Analysts had expected retail sales to rise 0.3% in May.
The report came after industry data showed that an index of service sector activity for Australia rose to 48.8 in June from a reading of 43.5 the previous month, remaining in contraction territory for the fifth consecutive month.
Meanwhile, investors were eyeing the outcome of the Bank of England and the European Central Bank’s policy-setting meetings on Thursday, amid growing expectations for further stimulus measures.
Weak data from the U.S. earlier in the week also led to believe that the Federal Reserve may implement a third round of quantitative easing to shore up economic growth, which has been hit by the ongoing debt crisis in the euro zone.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.19%, to hit 1.2239.
Trade volumes were expected to remain light as markets in the U.S. were closed for the Independence Day holiday.