The Australian dollar was higher against its U.S. counterpart on Wednesday, after positive Australian consumer sentiment data and as markets took a breather after the greenbacks broad rally.
AUD/USD hit 0.7078 during late Asian trade, the pair’s highest since November 6; the pair subsequently consolidated at 0.7063, advancing 0.46%.
The pair was likely to find support at 0.7012, Tuesday’s low, and resistance at 0.7171, the high of November 6.
The Westpac Banking Corporation reported on Wednesday that consumer sentiment in Australia rose 3.9% this month, after an increase of 4.2% in October.
Meanwhile, the greenback remained supported as last week’s strong U.S. employment data paved the way for the Federal Reserve to raise interest rates at its December meeting.
The Labor Department reported on Friday that the U.S. economy added 271,000 jobs last month, well ahead of expectations of the 180,000 expected by economists and the largest increase since December.
The unemployment rate fell to a seven-and-a-half-year low of 5.0%.
The Aussie was steady against the New Zealand dollar, with AUD/NZD at 1.0763.
Earlier Wednesday, the Reserve Bank of New Zealand said, in its biannual Financial Stability Report, that “there is less scope for monetary policy easing to offset a sharp rise in funding spreads.”
The report also noted that financial stability risks had risen, highlighting the health of New Zealand’s housing and dairy sectors in particular.