Investing.com - The Australian dollar rose to a two-day high against its U.S. counterpart on Wednesday, amid hopes for hopes of progress in resolving the euro zone’s debt crisis and following the release of domestic data on third quarter economic growth.
AUD/USD hit 1.0298 during late Asian trade, the pair’s highest since December 5; the pair subsequently consolidated at 1.0285, rising 0.42%.
The pair was likely to find support at 1.0155, Tuesday’s low and resistance at 1.0397, the high of November 9.
Earlier in the day, the Australian Bureau of Statistics said that gross domestic product grew by 1% from the second quarter, slightly below expectations for 1.2% expansion, but up 2.5% from a year earlier.
Markets were cautiously optimistic that European leaders will take decisive action to contain the region's debt crisis at a summit later this week, following a first step in that direction by France and Germany earlier in the week.
On Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy outlined proposals aimed at allowing for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, due to be discussed at this week’s summit.
Meanwhile, investors were also eyeing the European Central Bank’s policy decision on Thursday, amid speculation over a rate cut by the bank.
Elsewhere, the Aussie was up against the euro with EUR/AUD shedding 0.17%, to hit 1.3060.
Later in the day, the U.S. is to release government data on crude oil stockpiles.
AUD/USD hit 1.0298 during late Asian trade, the pair’s highest since December 5; the pair subsequently consolidated at 1.0285, rising 0.42%.
The pair was likely to find support at 1.0155, Tuesday’s low and resistance at 1.0397, the high of November 9.
Earlier in the day, the Australian Bureau of Statistics said that gross domestic product grew by 1% from the second quarter, slightly below expectations for 1.2% expansion, but up 2.5% from a year earlier.
Markets were cautiously optimistic that European leaders will take decisive action to contain the region's debt crisis at a summit later this week, following a first step in that direction by France and Germany earlier in the week.
On Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy outlined proposals aimed at allowing for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, due to be discussed at this week’s summit.
Meanwhile, investors were also eyeing the European Central Bank’s policy decision on Thursday, amid speculation over a rate cut by the bank.
Elsewhere, the Aussie was up against the euro with EUR/AUD shedding 0.17%, to hit 1.3060.
Later in the day, the U.S. is to release government data on crude oil stockpiles.