Investing.com- The Australian dollar resumed its uptrend against its U.S. rival in Monday’s Asian session despite a disappointing private sector credit report.
In Asian trading Monday, climbed 0.25% to 1.0400. The pair is likely to find support at 1.0343, Wednesday’s low and a five-week low and resistance at 1.0395, Friday’s high.
Surprisingly, the amount of new credit extended to Australian businesses and consumers last month was flat with the prior month’s level.
In a report, Reserve Bank of Australia said that Australian Private Sector Credit remained unchanged at a seasonally adjusted 0.0%, from 0.1% in the preceding month. Analysts had expected Australian Private Sector Credit to rise 0.3% last month.
The Aussie dollar was also able to gain ground against the greenback despite more dour news about the fiscal cliff. The U.S. Senate broke for the evening with no cliff resolution in place, but has promised to reconvene later today.
During a press interview Sunday, President Obama said financial markets would be adversely impacted if Congress fails to craft a fiscal cliff resolution prior to the Tuesday deadline. Obama said his top priority to ensure that taxes on middle-class Americans do not go up.
Obama’s tone regarding a fiscal cliff resolution remains optimistic, but time is running short. Congress recessed for the evening, but pledged to reconvene later today. However, little headway was made towards resolving the GDP-draining fiscal cliff Sunday, giving policymakers less than two days with which to work.
Elsewhere, surged 0.55% to 0.8244. hit 0.8154 on Wednesday, the pair’s lowest since November 23; the pair subsequently consolidated at 0.8195 by close of trade, 0.4% lower for the week.
The pair is likely to find support at 0.8154, Wednesday’s low and a five-week low and near-term resistance at 0.8225, Friday’s high.