Forex Pros – The Australian dollar pared gains against its U.S. counterpart on Thursday, pulling back from a two-day high as continuing violence in Libya spurred demand for safe-haven assets.
AUD/USD retreated from 1.0083, the pair’s highest since Tuesday, to hit 1.0025 during early European trade, easing up 0.03%.
The pair was likely to find support at 0.9966, Tuesday’s low and resistance at 1.0095, Tuesday’s high.
The Aussie’s earlier gains came after data showed that business investment climbed to a record in the final three months of 2010 and an index of leading indicators increased in December.
The Australian Bureau of Statistics said that capital spending advanced 1.3% from the previous three months, the highest on record. Investment in new plant and equipment, a contributor to gross domestic product, gained 6.1% last quarter, the biggest advance in a year.
The Aussie was also higher against the euro, with EUR/AUD shedding 0.12% to hit 1.3699.
Later in the day, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.
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