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Forex - AUD/USD declines as E.Z. concerns persist

Published 12/01/2011, 02:57 AM
AUD/USD
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AUD/JPY
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Investing.com - The Australian dollar slid against its U.S. counterpart on Thursday, trimming the previous day’s gains as market sentiment waned amid sustained concerns over the handling of the euro zone’s debt crisis.

AUD/USD hit 1.0186 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0193, shedding 0.87%.

The pair was likely to find support at 1.0112, the low of November 15 and resistance at 1.0342, the high of November 14.

The Australian dollar jumped over 2% on Wednesday, after six major central banks, including the Federal Reserve and the European Central Bank agreed to lower dollar swap rates to prevent a lack of liquidity in the global financial system.

But investors remained cautious as the joint action was more aimed at easing symptoms of the euro zone's debt crisis rather than treating the cause.

Earlier Thursday, official data showed that retail sales in Australia rose less-than-expected in September, ticking up 0.2% after a 0.4% increase the previous month.

The data came after a report showing that Australian building approvals dropped unexpectedly in October, tumbling 10.7% after a 14.2% decline the previous month.

Analysts had expected building approvals to rise 3.6% in October.

Also Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time since February 2009 as export orders fell sharply.

The Aussie was down against the yen with AUD/JPY declining 0.84%, to hit 79.14.

Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management is to release data on manufacturing activity.

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