Forexpros – The Australian dollar hit an 11-week high against its U.S. counterpart on Thursday, as investor sentiment strengthened, bolstering demand for higher yielding assets.
AUD/USD hit 1.0398 during late Asian trade, the pair’s highest since May 1; the pair subsequently consolidated at 1.0392, gaining 0.30%.
The pair was likely to find support at 1.0287, Wednesday’s low and near-term resistance at 1.0429, the high of May 1.
Risk appetite was boosted by stronger-than-expected corporate earnings and rising commodity prices, which supported demand for the Australian dollar.
The Aussie also remained supported after Tuesday’s minutes of the Reserve Bank of Australia’s July meeting said there was “no need” to cut interest rates in the coming months, citing stronger economic growth and the fact that rates were cut in May and June.
The Aussie shrugged off weak domestic business confidence data. National Australia Bank said its business confidence index fell to minus 2 in the second quarter from minus 1 in the first quarter, while its business conditions index fell to minus 1 from 3.
The Aussie hit a fresh record high against the euro, with EUR/AUD down 0.22% to 1.1823.
The euro came under pressure after German Chancellor Angela Merkel said Wednesday that she was not certain the European project would be successful, before adding that she was optimistic in spite of the current difficulties.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as reports on existing home sales and manufacturing activity in Philadelphia.
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