Investing.com - The Australian dollar edged lower against its U.S. counterpart on Thursday, as markets were jittery ahead of a highly anticipated decision by the Federal Reserve later in the day, while Wednesday’s positive news from the euro zone continued to support.
AUD/USD hit 1.0488 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0453, edging down 0.11%.
The pair was likely to find support at 1.0374, the low of August 24 and resistance at 1.0541, the high of August 1.
The Aussie found some support after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism on Wednesday.
The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed.
Meanwhile, markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
In Australia, the Melbourne Institute said earlier that inflation expectations remained unchanged at 2.4% in August.
Elsewhere, the Aussie was also steady against the New Zealand dollar with AUD/NZD dipping 0.02%, to hit 1.2741.
Also Thursday, the Reserve Bank of New Zealand left the benchmark interest rate unchanged at a record low of 2.50%, in a widely expected move.
Commenting on the decision, RBNZ Chairman Allan Bollard said there was little need to raise borrowing costs until the second half of 2013 because of risks from the euro zone’s financial crisis and the outlook for New Zealand’s trading partners, including China.
Later in the day, the U.S. was to publish government data on producer price inflation, as well as a weekly report on initial jobless claims.
The Federal Reserve was to announce its benchmark interest rate, followed by comments by Chairman Ben Bernanke.
AUD/USD hit 1.0488 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0453, edging down 0.11%.
The pair was likely to find support at 1.0374, the low of August 24 and resistance at 1.0541, the high of August 1.
The Aussie found some support after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism on Wednesday.
The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed.
Meanwhile, markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
In Australia, the Melbourne Institute said earlier that inflation expectations remained unchanged at 2.4% in August.
Elsewhere, the Aussie was also steady against the New Zealand dollar with AUD/NZD dipping 0.02%, to hit 1.2741.
Also Thursday, the Reserve Bank of New Zealand left the benchmark interest rate unchanged at a record low of 2.50%, in a widely expected move.
Commenting on the decision, RBNZ Chairman Allan Bollard said there was little need to raise borrowing costs until the second half of 2013 because of risks from the euro zone’s financial crisis and the outlook for New Zealand’s trading partners, including China.
Later in the day, the U.S. was to publish government data on producer price inflation, as well as a weekly report on initial jobless claims.
The Federal Reserve was to announce its benchmark interest rate, followed by comments by Chairman Ben Bernanke.