Forexpros – The Australian dollar rose to a one-week high against its U.S. counterpart on Wednesday, after the release of strong economic growth data from Australia while concerns over the handling of the euro zone’s financial troubles persisted.
AUD/USD hit 0.9862 during late Asian trade, the pair’s highest since May 29; the pair subsequently consolidated at 0.9843, jumping 1.04%.
The pair was likely to find support at 0.9709, Tuesday’s low and resistance at 0.9933, the high of May 22.
Official data showed earlier that first quarter economic growth in Australia outstripped expectations, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
Meanwhile, investors remained focused on developments in the euro zone after a teleconference of finance ministers from the Group of Seven nations on Tuesday ended with no immediate steps to soothe fears over the bloc’s debt crisis.
Market sentiment had come under pressure after Spain’s Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Investors were also jittery after Moody’s ratings agency downgraded the credit ratings of six German lenders and Austria’s three largest banks, saying they face risks if the euro zone crisis deepens.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.71%, to hit 1.2691.
Later in the day, the U.S. was to release revised data on nonfarm productivity, followed by government data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
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