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Forex - AUD/USD edges lower amid E.Z. concerns

Published 02/18/2013, 02:53 AM
Updated 02/18/2013, 02:54 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar edged lower against its U.S. counterpart on Monday, as concerns over the worsening of the debt crisis in the euro zone continued to weigh on market sentiment.

AUD/USD hit 1.0275 during late Asian trade, the pair's lowest since February 12; the pair subsequently consolidated at 1.0294, falling 0.16%.

The pair was likely to find support at 1.0250, the low of February 11 and resistance at 1.0325, the high of February 11.

Market sentiment remained under pressure after data on Thursday showed that the euro zone's economy contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline.

The weak data fuelled speculation over a possible rate cut by the European Central Bank in the coming months.

In Australia, official data showed that new motor vehicle sales fell 2.4% in January, after a 2.8% increase the previous month.

The Aussie was fractionally higher against the euro with EUR/AUD edging down 0.07%, to hit 1.2952.

Trade volumes were expected to remain light on Monday, with U.S. markets remaining closed for the President’s Day holiday.


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