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Forex - AUD/USD edges lower after Stevens remarks

Published 08/20/2014, 02:49 AM
Aussie slips lower vs. greenback as RBA comments weigh
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Investing.com - The Australian dollar edged lower against its U.S. counterpart on Wednesday, as comments by Reserve Bank of Australia Governor Glenn Stevens weighed, while Tuesday's upbeat U.S. data continued to support the greenback.

AUD/USD hit 0.9279 during late Asian trade, the pair's lowest since August 13; the pair subsequently consolidated at 0.9289, slipping 0.14%.

The pair was likely to find support at 0.9265, the low of August 13 and resistance at 0.9344, Tuesday's high.

The Australian dollar came under pressure after RBA Governor Stevens said the country's economy needs an injection of confidence rather than lower interest rates to stimulate growth, signaling that monetary policy will probably remain unchanged.

The comments came a day after the central bank, in the minutes of its August policy meeting, said that the nation's economic outlook remains uncertain that GDP growth was likely to have slowed to a more moderate pace in the June quarter.

Meanwhile, the greenback remained supported after data on Wednesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated, pointing to underlying strength in the housing sector.

The data offset a report showing that U.S. consumer prices rose just 0.1% in July.

The Aussie was little changed against the euro, with EUR/AUD inching up 0.02% to 1.4322.

Later in the day, the Federal Reserve was to publish the minutes of its latest policy meeting.

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