Investing.com

Investing.com - The Australian dollar rose to one-month highs against its U.S. counterpart on Wednesday, still supported by the annual budget report released on Tuesday by Australia''s Treasury.



AUD/USD hit 0.9409 during late Asian trade, the pair''s highest since April 14; the pair subsequently consolidated at 0.9398, climbing 0.44%.



The pair was likely to find support at 0.9320, the low of May 8 and resistance at 0.9460, the high of April 10 and a more than four-month high.



On Tuesday, Australia''s Treasurer Joe Hockey said the government aims to nearly halve its budget deficit over the next year through a combination of spending cuts and tax increases.



According to the Treasury''s budget report, the deficit is forecast to fall from A$50 billion to A$30 billion, while the spending cuts however are expected to lead to thousands of job losses.



The report also mentionned the government''s plans to spend as much as A$11 billion on key infrastructure projects such as roads, railways and a new airport in Sydney.



The Aussie was higher against the New Zealand dollar, with AUD/NZD edging up 0.22% to 1.0872.



Also Wednesday, official data showed that retail sales in New Zealand rose 0.7% in the first quarter, disappointing expectations for a 0.9% increase, after a 1.2% advance in the previous quarter.



Core retail sales, which exclude automobiles and gas stations, rose 0.8% in the last quarter, compared to expectations for a 0.9% gain. Core retail sales in the fourth quarter of 2013 were revised up to a 1% increase from a previously estimated 0.7% rise.



Later in the day, the U.S. was to release data on producer price inflation.





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