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Forex - AUD/USD up for second day as risk appetite strengthens

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Forex Pros - The Australian dollar was up against its U.S. counterpart for a second day on Monday, boosted by stronger risk appetite and expectations for rate hikes by the Reserve Bank in the coming months.

AUD/USD hit 1.0779 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0758, gaining 0.55%.

The pair was likely to find support at 1.0577, Friday's low and resistance at 1.0876, last Wednesday's high.

Risk sentiment strengthened after Friday's data showing that U.S. nonfarm payrolls rose by 244,000 in April, far outstripping the expected 185,000 forecast gain as the private sector posted the strongest employment gain in five years.

Also Friday, the RBA revised up its inflation forecast for 2011 and said higher interest rates may be needed "at some point", as mining investment drives down unemployment and inflation accelerates.

The Aussie was also higher against the yen with AUD/JPY climbing 0.54% to hit 86.75.

Earlier Monday, a report by the Australia & New Zealand Banking Group showed that the number of job advertized in newspapers and online increased for a twelfth month in April, climbing 1% from the previous month, when they gained 1.3%.

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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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