Forexpros – The Australian dollar rallied to a four-day high against its U.S. counterpart on Monday, as market sentiment was lifted by new hopes of progress in tackling the euro zone’s debt crisis.
AUD/USD hit 0.9888 during late Asian trade, the pair’s highest since November 22; the pair subsequently consolidated at 0.9852, jumping 1.45%.
The pair was likely to find support at 0.9682, the low of November 24 and resistance at 1.0012, the high of November 21.
The Aussie found support as euro-zone leaders were negotiating a fiscal pact aimed at preventing the currency bloc from fracturing.
Viewed as a first step toward closer fiscal and economic coordination within the single currency area, the proposal would make budget discipline legally binding and enforceable by European authorities.
But market sentiment came under pressure after the International Monetary Fund denied reports that it was preparing a EUR600 billion aid package for Italy.
Elsewhere, the Australian dollar was fractionally higher against its New Zealand counterpart with AUD/NZD inching up 0.02%, to trade at 1.3116.
Also Monday, the National Bank of New Zealand said that its index of business confidence rose to 18.3 for November, after a reading at 13.2 the previous month.
Later in the day, the U.S. was to release official data on new home sales.
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