Investing.com - The Australian dollar edged lower against its U.S. counterpart on Wednesday, as market sentiment waned after the Federal Reserve held back from taking new stimulus steps.
AUD/USD hit 0.9984 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0003, retreating 0.12%.
The pair was likely to find support at 0.9862, the low of November 29 and resistance at 1.0161, Tuesday’s high.
At its final policy meeting of the year, the Fed noted modest improvement in the U.S. economy but added that market turbulence in the face of Europe's debt woes posed a big risk.
Fed officials reiterated that short-term interest rates are likely to stay close to zero until mid-2013 at least.
Sentiment was also hit after German Chancellor Angela Merkel reiterated her opposition to increasing the EUR500 billion lending limit for the permanent euro zone bailout fund, the European Stability Mechanism, which should come into effect from the middle of next year.
In Australia, a report showed that the Westpac Banking Corporation index of consumer sentiment fell to its lowest level since August in November, tumbling 8.3% after a 6.3% increase the previous month.
Elsewhere, the Aussie was fractionally higher against the EUR/AUD inching down 0.04%, to hit 1.3013.
Later in the day, the U.S. was to produce official data on import prices and crude oil stockpiles.
AUD/USD hit 0.9984 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0003, retreating 0.12%.
The pair was likely to find support at 0.9862, the low of November 29 and resistance at 1.0161, Tuesday’s high.
At its final policy meeting of the year, the Fed noted modest improvement in the U.S. economy but added that market turbulence in the face of Europe's debt woes posed a big risk.
Fed officials reiterated that short-term interest rates are likely to stay close to zero until mid-2013 at least.
Sentiment was also hit after German Chancellor Angela Merkel reiterated her opposition to increasing the EUR500 billion lending limit for the permanent euro zone bailout fund, the European Stability Mechanism, which should come into effect from the middle of next year.
In Australia, a report showed that the Westpac Banking Corporation index of consumer sentiment fell to its lowest level since August in November, tumbling 8.3% after a 6.3% increase the previous month.
Elsewhere, the Aussie was fractionally higher against the EUR/AUD inching down 0.04%, to hit 1.3013.
Later in the day, the U.S. was to produce official data on import prices and crude oil stockpiles.