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Forex - AUD/USD down as global growth fears weigh

Published 08/24/2011, 03:13 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 that the global economic recovery is losing momentum curbed demand for higher yielding assets.

AUD/USD hit 1.0466 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0471, shedding 0.52%.

The pair was likely to find support at 1.0385, Tuesday’s low and resistance at 1.0557, the high of August 18.

On Tuesday, U.S. data showed that new home sales fell to their lowest level in five months in July, while the Richmond Fed's manufacturing index tumbled in August

The Commerce Department said that new home sales fell 0.7% to a 298,000 annual rate, from 312,000 in the preceding month. Analysts had expected new home sales to fall to 310,000 last month.

The Aussie was also lower against the yen, with AUD/JPY shedding 0.54% to hit 80.23.

Also Wednesday, Australian data showed that the value of completed construction work rose less-than-expected in the June quarter, rising 0.7%, disappointing expectations for a gains of 1.2%.

Elsewhere, a report showed that the Confidence Board’s index of Australia’s leading economic indicators lost 0.8% in June from a revised 0.2% decline in May.

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