Forexpros – The Australian dollar surged to a two-day high against its U.S. counterpart on Wednesday, after official data showed that the country’s economy grew at the fastest rate in four years in the second quarter.
AUD/USD hit 1.0611 during late Asian trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.0600, surging 1.10%.
The pair was likely to find support at 1.0479, Tuesday’s low and a seven-day low and short-term resistance at 1.0659, the high of August 29.
The Australian Bureau of Statistics said gross domestic product expanded by 1.2% in the second quarter, after contracting by a revised 0.9% in the three months to March. Economists had expected GDP to increase by 1% in the second quarter.
The report said household spending rose 1% in the quarter, adding 0.5% to GDP growth, while exports increased by 2.6%, adding 0.6% to growth.
Also Wednesday, Reserve Bank of Australia Glenn Stevens signaled that interest rates are likely to remain on hold in the coming months as turmoil in the global markets clouds the outlook for domestic growth.
“Periods of sudden increases in anxiety within international financial markets are moments when, if at all possible, it is good to be in a position to be able to maintain steady settings,” Stevens said.
The Aussie was also higher against the yen, with AUD/JPY rising 0.66% to hit 81.95.
Later in the day, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.
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