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Forex - AUD/USD down as higher oil prices weigh sentiment

Published 03/07/2011, 03:10 AM
AUD/USD
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EUR/AUD
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Investing.com – The Australian dollar was down against its U.S. counterpart on Monday, as continued unrest in Libya pushed oil prices higher, sparking fears over the impact of higher energy costs on the rate of global economic growth.

AUD/USD hit 1.0118 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0124, shedding 0.13%.

The pair was likely to find support at 1.0074, Friday’s low and a six-day low and resistance at 1.0188, Thursday’s high.

Earlier in the day, crude futures for delivery in April were trading at USD105.57 a barrel on the New York Mercantile Exchange, after peaking at USD106.41, while Brent oil surged above USD117.

Also Monday, the Australia and New Zealand Banking Group survey of jobs advertised in newspapers and on the Internet showed an increase of 1.2% in February, gaining for the tenth successive month.

Ivan Colhoun, the head of Australian economics at ANZ said the data was consistent with a further 28,000 jobs created over the month.

Meanwhile, the Aussie was fractionally higher against the euro, with EUR/AUD dipping 0.03% to hit 1.3790.

Elsewhere on Monday, New Zealand’s Prime Minister John Key reiterated his support for a cut in the benchmark interest rate after the country’s Treasury that the February 22 earthquake will reduce growth in economic activity by about 1.5% in 2011.

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