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Forex - AUD/USD down after euro zone debt talks

Published 11/30/2011, 03:17 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar was lower against its U.S. counterpart on Wednesday as market sentiment waned after a meeting of euro zone finance ministers failed to convince investors of progress on the region’s debt crisis.

AUD/USD hit 0.9944 during late Asian trade, the daily low; the pair subsequently consolidated at 0.9976, shedding 0.24%.

The pair was likely to find support at 0.9789, the low of November 28 and resistance at 1.0116, the high of November 17.

On Tuesday, euro zone finance ministers agreed to a plan to guarantee up to 30% of new bond issues from troubled governments.

They also agreed to develop investment vehicles that would boost the euro zone’s bailout fund, the European Financial Stability Facility’s ability to intervene in primary and secondary bond markets.

The finance ministers also approved the latest tranches of aid to Greece and Ireland and presented new Italian Prime Minister Mario Monti with a report outlining measures the country should take to reduce debt and boost economic growth.

Earlier Wednesday, official data showed that Australia private capital expenditures rose far more-than-expected in the third quarter, climbing 12.3% after a 6.2% increase the previous quarter.

Analysts had expected private capital expenditures to rise 8.2% in the third quarter.

The data came after a report from the Australia Housing Industry Association, showing that new home sales advanced 5.5% in October after a 3.5% decline the previous month.

The Aussie was up against the euro with EUR/AUD shedding 0.03%, to trade at 1.3310.

Later in the day, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.

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