Investing.com - The Australian dollar rose to a three-week high against its U.S. counterpart on Wednesday, as risk sentiment improved ahead of a key German court ruling later in the day and amid growing hopes for fresh easing measures by the Federal Reserve.
AUD/USD hit 1.0489 during late Asian trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.0481, climbing 0.45%.
The pair was likely to find support at 1.0374, the low of August 24 and resistance at 1.0435, the high of August 23.
Sentiment was boosted by hopes that Germany’s constitutional court will back the euro zone’s bailout fund, the European Stability Mechanism in a ruling expected later in the day.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus, sending the greenback broadly lower.
Adding to pressure on the U.S. dollar, Moody’s said on Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
In Australia, the Westpac Banking Corporation said earlier that consumer sentiment rose by 1.6% in September, following a 2.5% decline the previous month.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.27%, to hit 1.2289.
Later in the day, the U.S. was to release official data on import prices, followed by a government report on crude oil stockpiles.
AUD/USD hit 1.0489 during late Asian trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.0481, climbing 0.45%.
The pair was likely to find support at 1.0374, the low of August 24 and resistance at 1.0435, the high of August 23.
Sentiment was boosted by hopes that Germany’s constitutional court will back the euro zone’s bailout fund, the European Stability Mechanism in a ruling expected later in the day.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus, sending the greenback broadly lower.
Adding to pressure on the U.S. dollar, Moody’s said on Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
In Australia, the Westpac Banking Corporation said earlier that consumer sentiment rose by 1.6% in September, following a 2.5% decline the previous month.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.27%, to hit 1.2289.
Later in the day, the U.S. was to release official data on import prices, followed by a government report on crude oil stockpiles.