The Australian dollar edged higher against its U.S. counterpart on Tuesday, following comments by Reserve Bank of Australia Governor Glenn Stevens, altough concerns over ongoing tensions in Ukraine and violence in Gaza continued to weigh.
AUD/USD hit 0.9394 during late Asian trade, the session high; the pair subsequently consolidated at 0.9391, adding 0.18%.
The pair was likely to find support at 0.9338, the high of July 18 and resistance at 0.9456, the high of July 10.
Speaking at a conference in Sydney, RBA Governor Stevens said he is content with the current monetary policy setting and stands ready to do more if needed.
The Aussie had come under broad selling pressure earlier in the month, when Mr. Stevens warned investors that they were underestimating the risk of a significant fall in the currency.
But investors remained cautious as tensions between Russia and the West remained high in the wake of the downing of a Malaysian airliner in eastern Ukraine late last week, while Israel’s ground offensive in Gaza was also in focus.
The Aussie was higher against the euro, with EUR/AUD shedding 0.21% to 1.4394.
Later in the day, the U.S. was to release reports on consumer price inflation and existing home sales.