Forex - AUD/USD down as euro zone remains in focus

Published 02/01/2012, 03:12 AM
AUD/USD
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AUD/JPY
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Investing.com - The Australian dollar was lower against its U.S. counterpart on Wednesday, as concerns over the debt crisis in the euro zone weighed on sentiment, curbing demand for higher yielding assets.

AUD/USD hit 1.0570 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.0598, shedding 0.22%.

The pair was likely to find support at 1.0525, Monday’s low and resistance at 1.0684, Tuesday’s high and an almost three-month high.

Investors remained jittery amid uncertainty surrounding Greek talks with private sector creditors on a debt restructuring deal.

Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.

The Aussie found some support after a report earlier showed that China's official manufacturing purchasing managers index rose to 50.5 in January from 50.3 the previous month, slightly better than expectations for a reading of 49.5.

China is Australia’s largest trading partner.

Also Wednesday, Australian Prime Minister Julia Gillard warned exporters that the high level of the currency was likely to continue in the long term.

The Aussie was lower against the yen, with AUD/JPY shedding 0.26% to hit 80.79.

Later in the day, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.


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