12 May 2015
AUD/USD approaches to 0.8000
FXStreet (Córdoba) - The Australian dollar is among the best performers on Tuesday, with AUD/USD having climbed more than 100 pips throughout the day, supported by broad USD weakness and getting a small boost from Australian budget.
AUD/USD advanced to a 5-day peak of 0.7992 but lost momentum ahead of the 0.8000 psychological resistance and pulled back slightly. At time of writing, the pair is trading at the 0.7980 zone, 1.15% above its opening price.
Meanwhile, AUD/NZD extended gains to a year-to-date high of 1.0832 as growing expectations the Reserve Bank of New Zealand would cut rates in June continues to weigh on the kiwi.
Australia’s budget
The Australian government, led by Prime Minister Tony Abbott, offered generous tax concessions to small businesses to encourage investment, against expectations of an austerity budget. Treasurer Joe Hockey promised to be able to return the country to a surplus within five years.
Fears of a rating downgrade eased after Moody's said budget created “no surprises” and was consistent with a stable AAA rating, while Standard & Poor's commented it was in line with expectations of moderate and declining deficits.
AUD/USD advanced to a 5-day peak of 0.7992 but lost momentum ahead of the 0.8000 psychological resistance and pulled back slightly. At time of writing, the pair is trading at the 0.7980 zone, 1.15% above its opening price.
Meanwhile, AUD/NZD extended gains to a year-to-date high of 1.0832 as growing expectations the Reserve Bank of New Zealand would cut rates in June continues to weigh on the kiwi.
Australia’s budget
The Australian government, led by Prime Minister Tony Abbott, offered generous tax concessions to small businesses to encourage investment, against expectations of an austerity budget. Treasurer Joe Hockey promised to be able to return the country to a surplus within five years.
Fears of a rating downgrade eased after Moody's said budget created “no surprises” and was consistent with a stable AAA rating, while Standard & Poor's commented it was in line with expectations of moderate and declining deficits.