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Forex - AUD/USD rises after Fed statement, eyes on Spain

Published 10/25/2012, 04:03 AM
AUD/USD
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Investing.com - The Australian dollar rose to a one-week high against its U.S. counterpart on Thursday, as market sentiment improved after the Federal Reserve said Wednesday that some aspects of the U.S. economy were improving.

AUD/USD hit 1.0385 during European morning trade, the pair's highest since October 18; the pair subsequently consolidated at 1.0387, rising 0.42%.

The pair was likely to find support at 1.0318, the low of October 19 and resistance at 1.0412, the high of October 18.

In its rate statement on Wednesday, the Fed said the U.S. economy is improving moderately, but said job growth has been slow and the unemployment rate remains elevated.

The central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.

Investors remained cautious however amid ongoing uncertainty over whether Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.

The Aussie was fractionally lower against the New Zealand dollar with AUD/USD inching down 0.08%, to hit 1.2608.

Also Thursday, the Reserve Bank of New Zealand held the benchmark interest rate at 2.5%, marking Governor Graeme Wheeler's first decision as head of the central bank, after replacing Alan Bollard in late September.

Later in the day, the U.S. was to release official data on durable goods orders, as well as reports on pending home sales and initial jobless claims.


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