Aussie Strengthens On Syria Deal, Summers Withdrawal From Fed Chairman Contest
The Australian dollar advanced against other major currencies in Asian deals on Monday, as sentiment improved after the U.S. and Russia reached deal to remove Syria's chemical weapons and Lawrence Summers pulled out from race to Fed's top post.
Summers on Sunday notified President Barack Obama that he was withdrawing his name from consideration to replace Fed Chairman Ben Bernanke when the latter's term expires at the end of January.
"I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the administration or ultimately, the interests of the nation's ongoing economic recovery," Summers wrote.
Vice Chair Janet Yellen, who favor a slower reduction of asset purchases, now becomes the clear-cut favorite for the job.
Over the weekend, the U.S. and Russia agreed on a deal to eliminate Syria's chemical weapons by mid-2014.
The framework deal requires Syria to furnish full details of its stockpile within a week. The U.S said that non-compliance, including unauthorized transfer, or any use of chemical weapons by anyone in Syria, the UN Security Council should impose measures under Chapter VII of the UN Charter.
The aussie appreciated to 0.9390 against the greenback, highest since June 19. The next resistance for the aussie-greenback pair lies at the 0.95 level. The pair was worth 0.9244 at yesterday's close.
The aussie that ended Friday's trading at 1.1369 against the NZ dollar advanced to a 4-day high of 1.1419. The aussie may face resistance around the 1.15 level.
New Zealand house sales dipped 3.4 percent to 6,548 in August, compared to the previous month, the Real Estate Institute of New Zealand said today. That follows the 0.5 percent contraction in July.
The aussie advanced to a 4-day high of 92.76 against the yen, up by 1.2 percent from last week's multi-day low of 91.69. On the upside, the aussie may probably seek resistance at the 93.6 level.
The aussie spiked up to more than 2-month high of 0.9680 against the loonie, which is up from Friday's closing quote of 0.9569. The aussie is likely to test resistance at the 0.98 level.
The aussie reached 1.4236 against the euro, a level unseen since July 24 and an increase of 1 percent from last week's close of 1.4381. The next upside target for the aussie lies at the 1.41 level.
Looking ahead, Eurozone final inflation for August is due in the European session.
The U.S. industrial production and Canada existing home sales for August are set for release in the New York session.
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