Investing.com - The Australian dollar dropped to an eight-month low against its U.S. counterpart on Monday, after the release of disappointing building approvals data from Australia and as sentiment was hit by U.S. budget concerns.
AUD/USD hit 1.0115 during late Asian trade, the pair's lowest since July 12; the pair subsequently consolidated at 1.0131, retreating 0.71%.
The pair was likely to find support at 1.0101, the low of July 12 and resistance at 1.0206, the session high.
Official data earlier showed that building approvals in Australia fell unexpectedly in January, declining 2.4% after a 1.7% drop the previous month.
Analysts had expected building approvals to rise 2.8% in January.
A separate report showed that company operating profits in Australia declined 1% in the fourth quarter, in line with expectations, after a 2.7% fall in the previous quarter.
In more positive news, data showed that job advertisements in Australia rose 3% in February, following a 0.6% increase the previous month.
Meanwhile, sentiment remained under pressure after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.
U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.
The Aussie was lower against the euro with EUR/AUD climbing 0.56%, to hit 1.2830.
Later in the day, Spain was to release government data on the change in the number of people unemployed.
AUD/USD hit 1.0115 during late Asian trade, the pair's lowest since July 12; the pair subsequently consolidated at 1.0131, retreating 0.71%.
The pair was likely to find support at 1.0101, the low of July 12 and resistance at 1.0206, the session high.
Official data earlier showed that building approvals in Australia fell unexpectedly in January, declining 2.4% after a 1.7% drop the previous month.
Analysts had expected building approvals to rise 2.8% in January.
A separate report showed that company operating profits in Australia declined 1% in the fourth quarter, in line with expectations, after a 2.7% fall in the previous quarter.
In more positive news, data showed that job advertisements in Australia rose 3% in February, following a 0.6% increase the previous month.
Meanwhile, sentiment remained under pressure after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.
U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.
The Aussie was lower against the euro with EUR/AUD climbing 0.56%, to hit 1.2830.
Later in the day, Spain was to release government data on the change in the number of people unemployed.