AUD/USD on negative territory but close to seven-week highs

September 11, 2013 8:28 am

aud_0-thumb-610x335-28248Australian dollar was trading lower against its US counterpart, but in proximity to seven-week highs, following the positive data regarding Australian consumer confidence, while concerns over situation with Syria eased.

AUD/USD slid to a session low at 0.9279 at 4:57 GMT, after which consolidation followed at 0.9291, falling 0.23% on a daily basis. Support was likely to be found at September 9th low, 0.9168, while resistance was to be seen at June 10th high, 0.9480.

Westpac Banking Corp. (WBC) and Melbourne Institute said that Australian index of consumer confidence rose by 4.7% to a value of 110.6 in September, marking the highest level since December 2010, following the 3.5% increase during the preceding month. Values above the key level 100.0 are usually considered as a signal for predominant optimism. Consumer sentiment was boosted by prospects of a change in government policy and lower interest rates. The new Prime Minister Abbot and his coalition promised to lower taxes in order to support economy, after the investment boom in Australian sector of mining was slowing down.

Additionally, the yield on Australia’s benchmark 10-year bonds rose by 0.04 percentage point to 4.17%, after reaching 4.18%, the highest point since March 2012, Bloomberg imparted.

Meanwhile, US President Barack Obama said a Russian proposal for Syria to turn over its chemical weapons to international control was a “potentially positive development” and if such a plan was to come true, the United States would abstain from launching attacks on Syria.

Elsewhere, the Aussie was lower against the euro, with EUR/AUD cross gaining 0.22% for the day to trade at 1.4283 at 8:15 GMT. AUD/NZD pair was losing 0.09% to trade at 1.1539 at 8:16 GMT.

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