Forexpros — The Australian dollar edged higher against its U.S. counterpart on Wednesday, amid mounting speculation that the Federal Reserve will soon act to stimulate growth in the faltering U.S. economy.
AUD/USD hit 1.0701 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0691, gaining 0.07%.
The pair was likely to find support at 1.0558, Monday’s low and resistance at 1.0778, the high of August 4.
The minutes of the Fed’s August policy-setting meeting, released Tuesday, showed that some policymakers pressed for more aggressive measures to stimulate growth, beyond the pledge to hold interest rates at ultra-low levels for the next two years.
This added to speculation that the Fed may act after its extended two-day meeting in September.
Meanwhile, the Aussie was lower against the yen, with AUD/JPY slipping 0.09% to hit 81.86.
Later in the day, payroll processing firm ADP was to release a report on U.S. non-farm payrolls. The U.S. was also to publish data on manufacturing activity in the Chicago area and factory orders.
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