Investing.com - The Australian dollar dipped against its U.S. counterpart on Wednesday, as ongoing political turmoil in Greece and in Italy weighed on demand for riskier assets.
AUD/USD hit 1.0337 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0322, shedding 0.67%.
The pair was likely to find support at 1.0201, the low of November 3 and resistance at 1.0500, the high of October 24.
Market sentiment was briefly lifted on Tuesday evening, after Italian Prime Minister Silvio Berlusconi said he would resign after a key budget vote resulted in his loss of the parliamentary majority.
But markets remained jittery as yields on Italian ten-year bonds were hovering above 6.7%, creeping up to levels seen as unsustainable, and amid uncertainty over whether Italy’s new government will be able to implement austerity measures.
Meanwhile, Greek officials were still struggling to form a new coalition government as the country continues to hope for emergency funds that will save it from bankruptcy.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.28%, to hit 1.3350.
Earlier Wednesday, official data showed that home loans in Australia rose more-than-expected in September, ticking up 2.2% from 1.2% the previous month.
A separate report showed that Australian consumer sentiment jumped 6.3% in November after a 0.4% rise the previous month.
AUD/USD hit 1.0337 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0322, shedding 0.67%.
The pair was likely to find support at 1.0201, the low of November 3 and resistance at 1.0500, the high of October 24.
Market sentiment was briefly lifted on Tuesday evening, after Italian Prime Minister Silvio Berlusconi said he would resign after a key budget vote resulted in his loss of the parliamentary majority.
But markets remained jittery as yields on Italian ten-year bonds were hovering above 6.7%, creeping up to levels seen as unsustainable, and amid uncertainty over whether Italy’s new government will be able to implement austerity measures.
Meanwhile, Greek officials were still struggling to form a new coalition government as the country continues to hope for emergency funds that will save it from bankruptcy.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.28%, to hit 1.3350.
Earlier Wednesday, official data showed that home loans in Australia rose more-than-expected in September, ticking up 2.2% from 1.2% the previous month.
A separate report showed that Australian consumer sentiment jumped 6.3% in November after a 0.4% rise the previous month.