SYDNEY: The Australian dollar hovered near one-month highs against its US counterpart and the yen on Monday, after more disappointing US data reinforced expectations the Federal Reserve was unlikely to raise interest rates soon.
A bounce in iron ore prices, Australia’s top export earner, supported appetite for the currency.
The Australian dollar was steady at US78.24¢ at 1.10pm AEST, from Friday’s low of US77.65¢ and a six-year trough of US75.34¢ earlier this month. It was nearing stiff resistance around US78.40¢: an area it has repeatedly failed to break. Next resistance was found at US78.78¢; the March peak.
A decline in Aussie short positions as investors pushed back expectations of an easing in Australia and a tightening in the US could give the antipodean currency more momentum.
