Investing.com - The Australian dollar edged lower against its U.S. counterpart on Wednesday, as concerns over euro zone sovereign funding took over market sentiment ahead of Italian and Spanish debt auctions later in the week.
AUD/USD hit 1.0271 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0302, shedding 0.10%.
The pair was likely to find support at 1.0228, the low of January 10 and resistance at 1.0371, the high of January 5.
German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde discussed Greece and efforts to resolve the euro zone’s debt crisis on Tuesday. During the meeting, they renewed their commitment to the goal of strengthening growth and employment in Europe in a sustainable way.
Meanwhile, investors eyed Spain and Italy’s plan to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Elsewhere, the Aussie traded close to a record high against the euro with EUR/AUD retreating 0.09%, to hit 1.2379.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
AUD/USD hit 1.0271 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0302, shedding 0.10%.
The pair was likely to find support at 1.0228, the low of January 10 and resistance at 1.0371, the high of January 5.
German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde discussed Greece and efforts to resolve the euro zone’s debt crisis on Tuesday. During the meeting, they renewed their commitment to the goal of strengthening growth and employment in Europe in a sustainable way.
Meanwhile, investors eyed Spain and Italy’s plan to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Elsewhere, the Aussie traded close to a record high against the euro with EUR/AUD retreating 0.09%, to hit 1.2379.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.