Investing.com - The Australian dollar dropped to one-and-a-half month lows on Monday, still weighed by the possibility of a fresh rate cut by the Reserve Bank of Australia, while expectations for the Federal Reserve to soon begin tapering its stimulus program supported the greenback.
AUD/USD hit 0.9120 during late Asian trade, the pair's lowest since September 6; the pair subsequently consolidated at 0.9122, shedding 0.51%.
The pair was likely to find support at 0.9038, the low of September 4 and resistance at 0.9250, the high of November 22.
Last Thursday, RBA Governor Glenn Stevens said the central bank was "open-minded" about intervention to weaken the currency, adding that the Aussie remained overvalued.
Meanwhile, the greenback remained supported after last week’s minutes of the Fed’s October meeting said the bank could start tapering its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The Aussie was also lower against the euro with EUR/AUD gaining 0.39%, to hit 1.4841.
Later in the day, the U.S. was to release private sector data on pending home sales.
AUD/USD hit 0.9120 during late Asian trade, the pair's lowest since September 6; the pair subsequently consolidated at 0.9122, shedding 0.51%.
The pair was likely to find support at 0.9038, the low of September 4 and resistance at 0.9250, the high of November 22.
Last Thursday, RBA Governor Glenn Stevens said the central bank was "open-minded" about intervention to weaken the currency, adding that the Aussie remained overvalued.
Meanwhile, the greenback remained supported after last week’s minutes of the Fed’s October meeting said the bank could start tapering its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The Aussie was also lower against the euro with EUR/AUD gaining 0.39%, to hit 1.4841.
Later in the day, the U.S. was to release private sector data on pending home sales.