Investing.com - The Australian dollar edged higher against its U.S. counterpart on Monday, but gains were expected to remain limited after the release of disappointing business confidence from Australia and as demand for the greenback remained broadly supported.
AUD/USD hit 0.7031 during late Asian trade, the session high; the pair subsequently consolidated at 0.7006, edging up 0.09%.
The pair was likely to find support at 0.6945, the low of January 13 and resistance at 0.7088, the high of January 7.
The National Australia Bank reported on Monday that its business confidence index fell to 3 in December from 5 the previous month.
But the greenback remained supported by the diverging monetary policy stance between the Federal Reserve and other world central banks.
Investors were eyeing Wednesday’s Federal Reserve policy statement for any indication that the bank is considering slowing the path of interest rate increases this year.
The Aussie was higher against the euro, with EUR/AUD slipping 0.11% to 1.5402.