The Australian dollar reversed from its early lows against the other major currencies in European deals on Wednesday, and advanced, after the Reserve Bank of Australia Deputy governor Philip Lowe said he sees little room for further rate cuts, given the rising household debt levels.

Speaking at Perth, Lowe told soaring household debt were "a little more risky" than they once were and a consumption boom fueled by borrowing could pose challenges to the economy.

"While low interest rates are currently helping the economy through a period of transition, an extended period of low interest rates implies ongoing low returns to savers and low underlying returns on assets," Lowe added.

In other economic news, the latest survey from Westpac Bank showed that Australia's consumer confidence jumped sharply in August, as its index surged a seasonally adjusted 7.8 percent to a score of 99.5.

That follows the 3.2 percent tumble in July to a reading of 92.2. The aussie had been weaker in the previous session following the People's Bank of China's surprise action to devalue the yuan reference rate. China remains Australia's biggest trading partner.

In European trades, the aussie that fell to more than a 6-year low of 0.7214 against the greenback at 9:30 pm ET reversed direction with the pair trading at 0.7386. The next possible resistance for the aussie-greenback is seen around the 0.75 area. The pair was valued at 0.7300 at yesterday's close.

Bouncing off from an early 8-day low of 90.36 against the yen, the aussie edged up to 91.63. Continuation of the aussie's uptrend may lead it to a resistance surrounding the 92.6 level. The pair was trading at 91.39 when it ended Tuesday's deals.

The latest figures from the Ministry of Economy, Trade and Industry showed that Japan's industrial production increased more than initially estimated in June.

Industrial production grew a seasonally adjusted 1.1 percent month-over-month in June, revised up from a 0.8 percent rise in the flash data. In May, production had fallen 2.1 percent.

The aussie rebounded to 0.9578 against the loonie, after having fallen to a 12-day low of 0.9493 in early Asian deals. On the upside, 0.965 is possibly seen as the next resistance level for the aussie-loonie pair.

The aussie reversed from an early 8-day low of 1.1099 against the NZ dollar, edging up to 1.1139. If the aussie extends rise, it may locate resistance surrounding the 1.12 region.

The aussie climbed to 1.5107 against the euro, following an 8-month decline to 1.5304 in the previous session. The aussie is seen finding resistance near the 1.50 area.

Looking ahead, U.S. monthly budget for July is set to be announced in the New York session.

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