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Forex - AUD/USD drops to fresh 6-year lows amid Greece fears

Published 07/08/2015, 02:46 AM
Aussie hits fresh 6-year trough vs. greenback with eyes on Greece
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Investing.com - The Australian dollar dropped to fresh six-year lows against its U.S. counterpart on Wednesday, as markets were jittery after euro zone officials gave Greece until Thursday to present new proposals to secure a deal with creditors.

AUD/USD hit 0.7388 during late Asian trade, the pair's lowest since May 2009; the pair subsequently consolidated at 0.7388, retreating 0.85%.

The pair was likely to find support at 0.7239 and resistance at 0.7499, Tuesday's high.

The euro zone had expected Greece to submit fresh plans on Tuesday after its voters rejected a deal in a referendum, but no new proposals were tabled.

European Council President Donald Tusk said this was now the "most critical moment in the history of the euro zone".

A meeting of all 28 members of the European Union was also scheduled for Sunday - a day after the new Greek proposals are expected to be discussed by euro zone finance ministers.

Meanwhile, the greenback also remained supported after data on Tuesday showed that the U.S. trade deficit widened less-than-expected in May.

The U.S. Bureau of Economic Analysis reported that the trade deficit rose to $41.87 billion in May from a revised deficit of $40.7 billion in April. Analysts had expected the trade deficit to widen to $42.6 billion in May.

The Aussie was lower against the euro, with EUR/AUD advancing 0.80% to 1.4897.

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