Investing.com - The Australian dollar edged higher against its U.S. counterpart on Wednesday, after upbeat consumer sentiment data, while the New Zealand dollar held steady ahead of a speech by Federal Reserve Chair Janet Yellen due later in the day.
AUD/USD hit 0.7088 during late Asian trade, the session high; the pair subsequently consolidated at 0.7087, rising 0.23%.
The Westpac Banking Corporation said its consumer sentiment index rose by 4.2% in February, compared to expectations for a 1.0% decline, after a 3.5% drop the previous month.
A separate report showed that Australia’s new home sales increased by 6.0% in December, after a 2.7% decline in November.
NZD/USD was steady at 0.6635.
Investors remained cautious ahead of Fed Chair Janet Yellen’s testimony before the House Financial Services Committee, scheduled later in the day, for indications on future interest rate hikes.
Meanwhile, the greenback remained under pressure amid sustained global growth concerns and as oil prices dropped back below $28 a barrel.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 96.08, close to the previous session’s four-month low of 95.68.