Australian dollar edged higher against its US counterpart on Tuesday, as the greenback was still experiencing pressure after the not so optimistic data, regarding existing home sales in the United States, released yesterday.
AUD/USD reached a session high at 0.9284 at 2:10 GMT, the highest point since July 17th, after which consolidation followed at 0.9259, up by 0.09% for the day. Support was likely to be found at July 18th low, 0.9139, while resistance was to be encountered at June 26th high, 0.9345.
US dollar remained broadly weak against peers after on Monday an official report showed Existing Home Sales in the United States recorded an unexpected drop in June. Sales decreased by 1.2% to a seasonally adjusted annual level of 5.08 million units during June, which was the second highest level since November 2009. In May the sales figure was revised down to 5.14 million units from 5.18 million units previously. Experts had projected an increase to 5.25 million homes. This data dimmed the prospects of a possible scale back of Federal Reserve Bank’s stimulus program this year.
In addition, the Aussie extended its positions on Tuesday for the third consecutive day as higher commodity prices boosted the demand for higher-yielding assets. It was reported that gold prices reached a one-month high on Monday, while the price of the iron ore remained close to its highest point since April. To add to that, one-month volatility for the Australian dollar dropped to 11.1%, the lowest since May 30th.
Elsewhere, the Aussie traded on higher levels against the euro, with EUR/AUD cross dipping by 0.05% to trade at 1.4252 at 8:32 GMT.
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