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Forex - AUD/USD slips lower, but RBA comments support

Published 03/19/2013, 03:58 AM
Updated 03/19/2013, 03:59 AM
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EUR/AUD
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Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Tuesday, as market sentiment remained under pressure amid sustained euro zone debt concerns, although the minutes of the Reserve Bank of Australia's latest policy meeting lent some support to the Aussie.

AUD/USD hit 1.0375 during late Asian trade, the session low; the pair subsequently consolidated at 1.0375, slipping 0.24%.

The pair was likely to find support at 1.0344, the low of March 18 and resistance at 1.0414, the high of March 15 and a five-week high.

Sentiment weakened on Monday following news that a one-time tax was to be imposed on bank deposit holders as part of a EUR10 billion bailout deal for Cyprus.

The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid.

But the Aussie found some support after the minutes of the RBA's most recent policy-setting meeting showed that policymakers believe there are signs the economy is responding to low interest rates.

In addition, central bank Deputy Governor Philip Lowe defended a higher exchange rate and savings level, saying they helped stabilize the economy.

The Aussie was lower against the euro with EUR/AUD edging up 0.16%, to hit 1.2478.

Later in the day, the U.S. was to release official data on building permits and housing starts.


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