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Forex - AUD/USD almost unchanged as E.Z. concerns weigh

Published 11/17/2011, 03:21 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar was almost unchanged against its U.S. counterpart, swinging between small gains and losses as markets eyed Spanish and French bond auctions scheduled later in the day.

AUD/USD hit 1.0020 during late Asian trade, the pair's lowest since October 12; the pair subsequently consolidated at 1.0089, edging up 0.06%.

The pair was likely to find support at 0.9905, the low of October 11 and resistance at 1.0208, the high of November 10.

Risk sentiment came under pressure as Spain was to auction EUR4 billion of 10-year bonds and Madrid was expected to face its highest borrowing cost since the inception of the single currency.

Meanwhile, France was to auction up to EUR7 billion in government bonds after borrowing costs rose to a euro-era high on Wednesday.

Markets were also jittery after Moody's Investors Service cut ratings of 12 German public-sector banks, believing they are likely to receive less federal government support if needed.

Elsewhere, the Aussie was fractionally higher against the New Zealand dollar with AUD/NZD inching up 0.09%, to hit 1.3178.

Earlier Thursday, official data showed that New Zealand's producer price inflation input rose 0.6% in the third quarter, in line with expectations, after a 0.9% increase the previous quarter.

Later in the day, the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.

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