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Forex - AUD/USD climbs on U.S. budget deal

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Investing.com - The Australian dollar rose to an eight-day high against its U.S. counterpart on Wednesday, after U.S. lawmakers passed the highly anticipated budget bill, due to prevent the country from falling into recession.

AUD/USD hit 1.0493 during late Asian trade, the pair's highest since December 20; the pair subsequently consolidated at 1.0477, advancing 0.79%.

The pair was likely to find support at 1.0375, the session low and resistance at 1.0533, the high of December 19.

U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".

The U.S. president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.

Elsewhere, the Aussie was higher against the euro with EUR/AUD slipping 0.14%, to hit 1.2676.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing growth in the U.S.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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