The Australian dollar strengthened against the other major currencies in the Asian session on Wednesday after data showed that the nation’s consumer confidence increased at a faster rate in August.
Data from Westpac and the Melbourne Institute showed that their consumer sentiment index for Australia rose 3.8 percent month-on-month to 98.5 in August from 94.9, although still remaining below the no-change mark of 100. In July, the index had risen 1.9 percent.
Meanwhile, the Australian Bureau of Statistics showed that the wage costs in Australia were up 0.6 percent on quarter in the second quarter of 2014. That was shy of forecasts for an increase of 0.7 percent, which would have been unchanged from the first quarter. On a yearly basis, wage costs climbed 2.6 percent – in line with expectations and unchanged from the previous three months.
The Australian dollar rose to 6-day highs of 0.9287 against the U.S. dollar, 1.1023 against the NZ dollar and 1.4390 against the euro, from early lows of 0.9262, 1.0984 and 1.4430, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.93 against the greenback, 1.105 against the kiwi and 1.42 against the euro.
Against the yen, the aussie appreciated to a 6-day high of 94.94 from an early low of 94.71. The aussie may test resistance near the 95.61 region.
Data from the Cabinet Office showed that Japan’s gross domestic product contracted 6.8 percent on year in the second quarter of 2014. The contraction was smaller than expected.
Moving away from an early low of 1.0119 against the Canadian dollar, the aussie edged up to 1.0144. On the upside, 1.02 is seen as next resistance level for the aussie.
Looking ahead, German consumer price index and wholesale price index for July are due to be released.
In the New York session, U.S. retail sales data for July and business inventories for June are due to be released.
At 9:05 am ET, the Federal Reserve Bank of New York President William Dudley will deliver a speech at a conference on the risks of wholesale funding in New York.
The material has been provided by InstaForex Company – www.instaforex.com