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Forex - AUD/USD rises to 1-month highs, budget report supports

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Investing.com -

Investing.com - The Australian dollar rose to one-month highs against its U.S. counterpart on Wednesday, still supported by the annual budget report released on Tuesday by Australia's Treasury.

AUD/USD hit 0.9409 during late Asian trade, the pair's highest since April 14; the pair subsequently consolidated at 0.9398, climbing 0.44%.

The pair was likely to find support at 0.9320, the low of May 8 and resistance at 0.9460, the high of April 10 and a more than four-month high.

On Tuesday, Australia's Treasurer Joe Hockey said the government aims to nearly halve its budget deficit over the next year through a combination of spending cuts and tax increases.

According to the Treasury's budget report, the deficit is forecast to fall from A$50 billion to A$30 billion, while the spending cuts however are expected to lead to thousands of job losses.

The report also mentionned the government's plans to spend as much as A$11 billion on key infrastructure projects such as roads, railways and a new airport in Sydney.

The Aussie was higher against the New Zealand dollar, with AUD/NZD edging up 0.22% to 1.0872.

Also Wednesday, official data showed that retail sales in New Zealand rose 0.7% in the first quarter, disappointing expectations for a 0.9% increase, after a 1.2% advance in the previous quarter.

Core retail sales, which exclude automobiles and gas stations, rose 0.8% in the last quarter, compared to expectations for a 0.9% gain. Core retail sales in the fourth quarter of 2013 were revised up to a 1% increase from a previously estimated 0.7% rise.

Later in the day, the U.S. was to release data on producer price inflation.

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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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