Shutterstock photo
Markets

Forex - AUD/USD rises to almost 2-month high on Cyprus deal

Shutterstock photo

Shutterstock photo

Investing.com - The Australian dollar rose to an almost two-month high against its U.S. counterpart on Monday, after Cyprus secured an international bailout preventing the country's exit from the euro zone.

AUD/USD hit 1.0468 during late Asian trade, the pair's highest since January 30; the pair subsequently consolidated at 1.0460, adding 0.11%.

The pair was likely to find support at 1.0433, the session low and resistance at 1.0488, the high of January 4.

Market sentiment strengthened after euro zone finance ministers approved a EUR10 billion bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

However, all bank deposits under EUR100,000 will be "fully guaranteed".

The head of the eurogroup of euro zone finance ministers, Jeroen Dijsselbloem, said the deal had "put an end to the uncertainty" around Cyprus's economy.

The deal ended a week of uncertainty after a previous agreement that included a levy on deposits in Cypriot banks was rejected by the country's parliament last Tuesday.

The Aussie was almost unchanged against the euro with EUR/AUD inching down 0.03%, to hit 1.2431.

Investors were looking ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the trading day.

Last week, the U.S. central bank announced that it will leave monetary policy unchanged in spite of recent signs that the U.S. recovery is gaining traction.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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.

Other Topics

ForEx