Forex - AUD/USD rises on Sarkozy/Merkel pledge

Forex News - The Australian dollar was up against its U.S. counterpart on Monday, as France and Germany's announced plan to tackle the euro zone debt crisis boosted demand for riskier assets.

AUD/USD hit 0.9853 during late Asian trade, the daily high; the pair subsequently consolidated at 0.9880, rising 1.14%.

The pair was likely to find support at 0.9621, the low of October 6 and resistance at 0.9985, the high of September 27.

After a meeting in Berlin on Sunday, German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged to present a "comprehensive package" of measures to counter the financial crisis in the euro zone, by the end of the month.

According to reports, the plan should include ways to recapitalize banks and to strengthen the coordination of national budget policies between the 17 members of the single currency bloc.

Elsewhere, the Aussie was down against the euro with EUR/AUD inching up 0.01%, to hit 1.3697.

Also Monday, industry data showed that Australian job advertisements fell 2.1% in September, after a downwardly revised 0.7% decline the previous month, adding to speculation that the Reserve Bank of Australia may cut interest rates at its next meeting in November.