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Forex - AUD/USD hovering close to post-float high on rate view

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Forexpros - The Australian dollar was hovering close to the post-float high against its U.S. counterpart on Thursday, boosted by prospects for higher interest rates, while the greenback remained under pressure amid uncertainty over U.S. debt ceiling negotiations.

AUD/USD hit 1.1058 during late Asian trade, the daily high; the pair subsequently consolidated at 1.1039, gaining 0.16%.

The pair was likely to find support at 1.0934, Wednesday's low and short-term resistance at 1.1079, Wednesday's high and the pair's highest since it was floated in December 1985.

Data on Wednesday showed that Australian consumer price inflation recorded the biggest annual increase since 2008 in the three months to June, accelerating at an annualized rate of 3.6%, more than economists' 3.4% forecast.

The data renewed expectations that the Reserve Bank of Australia will hike its benchmark interest rate in the near-term, in order to keep inflation inside its targeted range of 2% to 3%.

Elsewhere, the greenback remained under broad selling pressure as congressional leaders were not showing any signs of progress on raising the U.S. debt ceiling ahead of the August 2 deadline, adding to fears over a U.S. debt downgrade by ratings agencies.

Meanwhile, the Aussie was fractionally lower against the yen, with AUD/JPY dipping 0.06% to hit 85.87.

Later in the day, the U.S. was to release government data on unemployment claims and 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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