The Australian dollar strengthened against the other major currencies in the Asian session on Tuesday after data showed that confidence among businesses in Australia touched a four-year high in July.
Data from the National Australia Bank showed, an index measuring business confidence in Australia showed a score of +11. That’s up from +8 in June.
The index for business conditions came in with a score of +2, rising from +2 in the previous month.
Separate news from the Australian Bureau of Statistics showed that house prices in Australia were up 1.8 percent on quarter in the second quarter of 2014. That topped forecasts for an increase of 1.0 percent, and it was up from the downwardly revised 1.5 percent in the first quarter (originally 1.7 percent).
On a yearly basis, house prices jumped 10.1 percent – also beating expectations for 9.3 percent but slowing from 10.9 percent in the previous three months.
The Australian dollar rose to a 5-day high of 1.0979 against the NZ dollar, from an early low of 1.0944. If the aussie extends its uptrend, it is likely to find resistance around the 1.10 area.
The aussie, which closed yesterday’s deals at 1.4446 against the euro, strengthened to a 4-day high of 1.446. This may be compared to an early 4-day low of 1.4426. The aussie may test resistance near the 1.448 region.
Moving away from early lows of 0.9247 against the U.S. dollar and 94.59 against the yen, the aussie edged up to 0.9268 and 94.83, respectively. On the upside, 0.93 against the greenback and 95.68 against the yen are seen as next resistance level for the aussie.
Against the Canadian dollar, the aussie edged up to 1.0136. This may be compared to an 4-day low of 1.0108. If the aussie continues its uptrend, it is likely to find resistance around the 1.02 region.
Looking ahead, Japan industrial production for June is due at 12:30 am ET.
In the European session, ZEW economic sentiment survey for Germany is due to be released.
In the New york session, U.S. monthly budget statement of July is due at 2:00 pm ET.
The material has been provided by InstaForex Company – www.instaforex.com