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Forex - AUD/USD extends gains in risk-on trade

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Investing.com - The Australian dollar extended gains against the U.S. dollar on Tuesday as the Bank of Japan's stimulus program bolstered demand for riskier assets, while comments from a Reserve Bank of Australian official also lent support.

AUD/USD hit 1.0494 during U.S. morning trade, the pair's highest since April 3; the pair subsequently consolidated at 1.0474, gaining 0.60%.

The pair was likely to find support at 1.0404, the session low and resistance at 1.0496, the high of April 3 and a two-month high.

The Australian dollar found support as investors moved away from Japanese government bonds to higher yielding assets after the Bank of Japan announced that it was embarking on a massive monetary easing program last week.

Comments by an official from Australian's central bank also lent support.

RBA Governing Board member John Edwards said Tuesday that the Australian economy was coping better than had been expected with the strong domestic dollar.

The RBA has repeatedly said the strong Australian dollar was creating a drag on the economy.

The comments dampened expectations that the central bank will resume a round of interest rate cuts.

The Aussie was trading close to its highest level since July 2008 against the yen, with AUD/JPY easing up 0.10% to 103.54.

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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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