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Forex - AUD/USD edges higher as sentiment improves

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Investing.com - The Australian dollar edged higher against its U.S. counterpart on Tuesday, supported by positive business confidence data out of Australia, as well as an inflation report from China.

AUD/USD hit 1.0448 during late Asian trade, the pair's highest since April 4; the pair subsequently consolidated at 1.0425, adding 0.12%.

The pair was likely to find support at 1.0386, the low of April 4 and resistance at 1.0490, the high of April 4.

In a report, the National Australia Bank said its index of business confidence rose to 2 in March from a reading of 1 the previous month.

The Aussie also found support after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.

The data eased market concerns over further policy tightening by the Chinese government.

China is Australia's biggest export partner.

The Aussie was higher against the New Zealand dollar with AUD/NZD shedding 0.22%, to hit 1.2281.

Also Tuesday, the New Zealand Institute of Economic Research said its index of business confidence rose to 23 in the first quarter from a reading of 20 in the previous quarter.

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak.

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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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