Investing.com - The Australian dollar edged up against its U.S. counterpart on Monday, but gains were expected to remain limited as Friday's upbeat U.S. data continued to support demand for the greenback.
AUD/USD hit 0.8788 during late Asian trade, the session high; the pair subsequently consolidated at 0.8757, adding 0.15%.
The pair was likely to find support at 0.8684, the low of October 16 and resistance at 0.8831, the high of October 16.
The greenback remained supported after a report on Friday showed that the University of Michigan’s consumer sentiment index unexpectedly rose to 86.4 in October, the most since July 2007.
Another report showed that housing starts rose more than expected last month, bolstering the outlook for the sector.
The data reinforced expectations that the Federal Reserve will raise interest rates in the second half of 2015.
The Aussie was higher against the euro, with EUR/AUD shedding 0.20% to 1.4560.