Investing.com - The Australian dollar rose against its U.S. counterpart on Wednesday, after the release of mixed inflation data from Australia as markets eyed the Federal Reserve's policy statement due later in the day.
AUD/USD hit 0.8025 during late Asian trade, the pair's highest since January 23; the pair subsequently consolidated at 0.7992, advancing 0.71%.
The pair was likely to find support at 0.7871, the low of January 26 and resistance at 0.8137, the high of January 22.
In a report, the Australian Bureau of Statistics said that consumer price inflation rose 0.2% in the last quarter, below expectations for a 0.3% gain, after an increase of 0.5% in the three months to September.
Year-on-year, Australian CPI increased by 1.7% in the three months to December, compared to expectations for a 1.8% rise and down from a 2.3% gain in the third quarter of 2014.
The report also showed that Australia's trimmed mean consumer price inflation, which excludes the most volatile 30% of items, rose 0.7% in the fourth quarter of 2014, exceeding expectations for a 0.5% gain, after a 0.4% uptick in the previous quarter.
Meanwhile, market participants were looking ahead to the outcome of Wednesday’s Fed meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy.
The Aussie was also higher against the euro, with EUR/AUD tumbling 0.93% to 1.4203.