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Forex - AUD/USD surges to record high on global growth hopes

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Forex Pros - The Australian dollar rose to its highest level against its U.S. counterpart since it was floated in 1983 on Wednesday, amid hopes that the global economic recovery will boost demand for commodities.

AUD/USD hit 1.0332 during late Asian trade, the pair's all-time high; the pair subsequently consolidated at 1.0305, gaining 0.14%.

The pair was likely to find support at 1.0203, Tuesday's low and resistance at 1.0400.

The greenback was broadly higher against other currencies after St. Louis Fed President James Bullard said Tuesday the central bank could trim its USD600 billion bond-buying program by USD100 billion and warned that waiting too long to tighten policy could produce "a lot of inflation" in the U.S. and around the world.

At the present time, benchmark interest rates are 4.75% in Australia, compared with zero in the U.S., attracting investors to the nations higher-yielding currency.

The Aussie was also higher against the yen, with AUD/JPY surging 0.83% to hit 85.56.

Later in the day, the U.S. was to publish a report on private sector employment by payroll processing firm ADP.

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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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