Forex - AUD/JPY falls on weak growth data

Published 03/06/2012, 11:22 PM
Updated 03/06/2012, 11:25 PM
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Investing.com - The Australian dollar fell against the yen on Wednesday after the Reserve Bank of Australia reported weaker than expected fourth-quarter economic growth rates.

In Asian trading on Wednesday, AUD/JPY hit 85.11, down 0.30%  up from a low of 84.81 and off a high of 85.44.

The pair sought to test technical support at 82.06 and resistance at 88.86.

Australia’s gross domestic product grew 0.4% in the fourth quarter, far below expectations for a 0.7% gain.

Furthermore fears that Greece is still at risk of default sparked a run to the yen as a safe haven play.

Greece needs 75% of its private creditors to sign on to terms of a debt restructuring by March 8 although as of Tuesday in Europe, only about 20% had signed on.

Greece needs private creditors to restructure their debts as part of a requirement to tap a EUR130 billion rescue fund.

The Australian dollar, meanwhile, was down against its U.S. and New Zealand counterparts, with AUD/USD losing 0.06% to 1.0547 and AUD/NZD down 0.51% at 1.2921.

Later Wednesday, Japan is set to release gross domestic product figures.

The Reserve Bank of New Zealand is to announce its benchmark interest rate and hold a press conference to discuss monetary policy.





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