Forexpros – The Australian dollar moved higher against its U.S. counterpart on Tuesday, as global risk appetite improved but gains were capped following the release of some disappointing domestic economic data.
AUD/USD hit 1.0561 during late Asian trade, the session high; the pair subsequently consolidated at 1.0528, easing up 0.12%.
The pair was likely to find support at 1.0473, Monday’s low and an almost five-week low and resistance at 1.0662, Friday’s high.
Market sentiment strengthened on Monday after the head of the Eurogroup of finance ministers indicated that a EUR130 billion bailout for Greece would be formally approved early this week, after the country completed a debt restructuring deal with its private creditors last week.
But the Aussie failed to build on gains after official data showed that Australian home loan approvals fell more-than-expected in January.
The Australian Bureau of Statistics said that Australian home loans fell by a seasonally adjusted 1.2%, compared to expectations for a modest 0.1% decline.
Home loan approvals for December were revised down to a 2.1% increase from a previously reported 2.3% gain.
A separate report by National Australia Bank showed that its index of business confidence fell to the lowest level in four months in January.
The Aussie was lower against its New Zealand cousin, with AUD/NZD shedding 0.25% to hit 1.2820, but advanced against the yen, with AUD/JPY climbing 0.41% to hit 86.82.
Later in the day, the U.S. was to release government data on retail sales and business inventories. Also Tuesday, the Federal Reserve was to announce its benchmark interest rate; the announcement was to be accompanied by the central bank’s rate statement.
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