Investing.com - The Australian dollar rose against its U.S. counterpart on Tuesday, but gains were limited as uncertainty over the results of Spain’s financial bailout and upcoming elections in Greece dampened market sentiment.
AUD/USD hit 0.9915 during late Asian trade, the session high; the pair subsequently consolidated at 0.9907, adding 0.44%.
The pair was likely to find support at 0.9819, the low of June 8 and resistance at 1.0006, Monday’s high.
Sentiment on the Aussie remained vulnerable as the exact amount Spain is to receive to recapitalize its banks will only be decided later this month, after the results of independent audits are published. In addition, questions remained over the source of the funds and whether the bailout repayments would add to the country’s already high borrowing costs.
Uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
Parties that support and oppose Greece's international bailout, and the harsh austerity measures accompanying it, remained neck-and-neck in the latest opinion polls.
In Australia, industry data showed that an index of business confidence fell to minus 2 in May from a reading of 4 the previous month.
The Aussie was steady against the New Zealand dollar with AUD/NZD inching down 0.02%, to hit 1.2823.
Also Tuesday, industry data showed that house prices in New Zealand rose 1.7% in May, following a 0.3% decline the previous month.
Later in the day, the U.S. was to publish official data on import prices as well as a government report on federal budget balance.
AUD/USD hit 0.9915 during late Asian trade, the session high; the pair subsequently consolidated at 0.9907, adding 0.44%.
The pair was likely to find support at 0.9819, the low of June 8 and resistance at 1.0006, Monday’s high.
Sentiment on the Aussie remained vulnerable as the exact amount Spain is to receive to recapitalize its banks will only be decided later this month, after the results of independent audits are published. In addition, questions remained over the source of the funds and whether the bailout repayments would add to the country’s already high borrowing costs.
Uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
Parties that support and oppose Greece's international bailout, and the harsh austerity measures accompanying it, remained neck-and-neck in the latest opinion polls.
In Australia, industry data showed that an index of business confidence fell to minus 2 in May from a reading of 4 the previous month.
The Aussie was steady against the New Zealand dollar with AUD/NZD inching down 0.02%, to hit 1.2823.
Also Tuesday, industry data showed that house prices in New Zealand rose 1.7% in May, following a 0.3% decline the previous month.
Later in the day, the U.S. was to publish official data on import prices as well as a government report on federal budget balance.