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Forex - AUD/USD hits 3-week high as global growth fears ease

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Forexpros - The Australian dollar rose to a three-week high against its U.S. counterpart on Monday, after Federal Reserve Chairman Ben Bernanke said Friday that the central bank was prepared to implement measures to boost growth.

AUD/USD hit 1.0634 during late Asian trade, the pair's highest since August 4; the pair subsequently consolidated at 1.0609, gaining 0.35%.

The pair was likely to find support at 1.0416, Friday's low and resistance at 1.0778, the high of August 4.

Speaking at the Fed's annual gathering in Jackson Hole, Wyoming, Bernanke said that the U.S. economy was recovering and the Fed still had a "range of tools" it can use to bolster growth.

Bernanke also said that the Fed's September policy-setting meeting would be extended to two days from one, in order to "allow a fuller discussion" on the economy.

But the Aussie's gains were limited after industry data showed that new home sales fell sharply in July, down for the second successive month.

The Housing Industry Association said the number of new homes sold in July dropped by 8% after falling by 8.7% in the preceding month.

The Aussie was also higher against the yen, with AUD/JPY rising 0.37% to hit 81.34.

Later in the day, the U.S. was to release industry data on pending home sales.

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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.

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