Investing.com - The Australian dollar dropped to a six-week low against its U.S. counterpart on Wednesday, following the release of disappointing economic data from Australia, while investors remained cautious ahead of the European Central Bank’s upcoming policy meeting.
AUD/USD hit 1.0191 during late Asian trade, the pair’s lowest since July 25; the pair subsequently consolidated at 1.0194, dropping 0.30%.
The pair was likely to find support at 1.0121, the low of July 13 and resistance at 1.0291, the high of July 6.
Official data showed earlier that Australia’s gross domestic product rose less-than-expected in the second quarter, rising 0.6% after a revised 1.4% increase the previous month.
Analysts had expected Australia’s GDP to rise 0.7% in the second quarter.
A separate report showed that an index of service sector activity for Australia ticked down to 42.4 in August from a reading of 46.5 the previous month.
Meanwhile, investors eyed the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
Market sentiment remained vulnerable however, amid growing fears that the central bank may disappoint.
Separately, the greenback’s gains were limited after disappointing U.S. manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
The Aussie was steady against the euro with EUR/AUD dipping 0.03%, to hit 1.2287.
Later in the day the U.S. was to produce revised data on nonfarm productivity.
AUD/USD hit 1.0191 during late Asian trade, the pair’s lowest since July 25; the pair subsequently consolidated at 1.0194, dropping 0.30%.
The pair was likely to find support at 1.0121, the low of July 13 and resistance at 1.0291, the high of July 6.
Official data showed earlier that Australia’s gross domestic product rose less-than-expected in the second quarter, rising 0.6% after a revised 1.4% increase the previous month.
Analysts had expected Australia’s GDP to rise 0.7% in the second quarter.
A separate report showed that an index of service sector activity for Australia ticked down to 42.4 in August from a reading of 46.5 the previous month.
Meanwhile, investors eyed the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
Market sentiment remained vulnerable however, amid growing fears that the central bank may disappoint.
Separately, the greenback’s gains were limited after disappointing U.S. manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
The Aussie was steady against the euro with EUR/AUD dipping 0.03%, to hit 1.2287.
Later in the day the U.S. was to produce revised data on nonfarm productivity.