Investing.com - The Australian dollar resumed its uptrend
against its U.S. rival in Monday's Asian session despite a
disappointing private sector credit report.
In Asian trading Monday, AUD/USD climbed 0.25% to 1.0400. The pair
is likely to find support at 1.0343, Wednesday's low and a
five-week low and resistance at 1.0395, Friday's high.
Surprisingly, the amount of new credit extended to Australian
businesses and consumers last month was flat with the prior month's
level.
In a report, Reserve Bank of Australia said that Australian Private
Sector Credit remained unchanged at a seasonally adjusted 0.0%,
from 0.1% in the preceding month. Analysts had expected Australian
Private Sector Credit to rise 0.3% last month.
The Aussie dollar was also able to gain ground against the
greenback despite more dour news about the fiscal cliff. The U.S.
Senate broke for the evening with no cliff resolution in place, but
has promised to reconvene later today.
During a press interview Sunday, President Obama said financial
markets would be adversely impacted if Congress fails to craft a
fiscal cliff resolution prior to the Tuesday deadline. Obama said
his top priority to ensure that taxes on middle-class Americans do
not go up.
Obama's tone regarding a fiscal cliff resolution remains
optimistic, but time is running short. Congress recessed for the
evening, but pledged to reconvene later today. However, little
headway was made towards resolving the GDP-draining fiscal cliff
Sunday, giving policymakers less than two days with which to work.
Elsewhere, NZD/USD surged 0.55% to 0.8244. NZD/USD hit 0.8154 on
Wednesday, the pair's lowest since November 23; the pair
subsequently consolidated at 0.8195 by close of trade, 0.4% lower
for the week.
The pair is likely to find support at 0.8154, Wednesday's low and a
five-week low and near-term resistance at 0.8225, Friday's high.
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