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Forex - AUD/USD higher on RBA statement, U.S. shutdown

Posted: 10/1/2013 2:55:00 AM
Referenced Stocks: - The Australian dollar was higher against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged and as the greenback weakened after the U.S. government began a partial shutdown.

AUD/USD hit 0.9401 during late Asian trade, the pair's highest since September 24; the pair subsequently consolidated at 0.9421, gaining 1.04%.

The pair was likely to find support at 0.9281, Monday's low and resistance at 0.9457, the high of September 23.

In a widely expected decision, the RBA held its benchmark interest rate at a record low 2.50%, saying that earlier rate cuts are still filtering through the economy.

In addition, official data showed that retail sales in Australia rose 0.4% in August, beating expectations for a 0.3% increase, after a 0.1% rise the previous month.

Meanwhile, the greenback remained under pressure as the U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget. It is the first partial government shutdown in the U.S. for 17 years.

Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.

The Aussie was higher against the euro with EUR/AUD retreating 0.59%, to hit 1.4418. offers an extensive set of professional tools for the financial markets.
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