Investing.com - The Australian dollar dropped against its U.S. counterpart on Tuesday, despite the release of positive trade balance data out of Australia, while the greenback recovered from Monday's losses.
AUD/USD hit 0.8912 during late Asian trade, the pair's lowest since January 3; the pair subsequently consolidated at 0.8927, retreating 0.45%.
The pair was likely to find support at 0.8843, the low of January 2 and resistance at 0.9004, the high of January 3.
Official data earlier showed that Australia's trade deficit narrowed to AUD0.12 billion in November, from AUD0.36 billion in October. Analysts had expected the trade deficit to narrow to AUD0.30 billion in November.
The dollar had come under pressure on Monday after the Institute of Supply Management said its non-manufacturing purchasing manager's index declined to 53.0 in December from 53.9 in November. Analysts had expected the index to increase to 54.5.
The ISM said the new orders index contracted for the first time since July 2009, falling to 49.4.
Investors were eyeing Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.
The Aussie was lower against the euro, with EUR/AUD gaining 0.38% to 1.5256.
Later in the day, the U.S. was to publish a report on the trade balance.
AUD/USD hit 0.8912 during late Asian trade, the pair's lowest since January 3; the pair subsequently consolidated at 0.8927, retreating 0.45%.
The pair was likely to find support at 0.8843, the low of January 2 and resistance at 0.9004, the high of January 3.
Official data earlier showed that Australia's trade deficit narrowed to AUD0.12 billion in November, from AUD0.36 billion in October. Analysts had expected the trade deficit to narrow to AUD0.30 billion in November.
The dollar had come under pressure on Monday after the Institute of Supply Management said its non-manufacturing purchasing manager's index declined to 53.0 in December from 53.9 in November. Analysts had expected the index to increase to 54.5.
The ISM said the new orders index contracted for the first time since July 2009, falling to 49.4.
Investors were eyeing Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.
The Aussie was lower against the euro, with EUR/AUD gaining 0.38% to 1.5256.
Later in the day, the U.S. was to publish a report on the trade balance.