Investing.com – The Australian dollar edged lower against its U.S. counterpart on Wednesday, amid concerns over the outlook for global growth and speculation that the Federal Reserve will unveil fresh stimulus measures.
AUD/USD hit 1.0234 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0267, slipping 0.09%.
The pair was likely to find support at 1.0166, the low of September 19 and resistance at 1.0345, the high of September 15.
On Tuesday, the International Monetary Fund downgraded its global growth outlook for 2012 to 4% from a previous estimate of 4.3%, saying that the world economy has entered a "dangerous new phase".
Meanwhile, speculation mounted that Federal Reserve Chairman Ben Bernanke would announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist after the central bank’s policy setting meeting later in the day.
The Aussie found support after a report showed that China's Conference Board Leading Economic Index rose by 0.6% in July to 158.6, following a 0.9% increase in June and a 0.4% increase in May. China is Australia’s largest export destination.
The Aussie was also lower against the yen, with AUD/JPY shedding 0.38% to hit 78.28.
Later in the day, Reserve Bank of Australia Deputy Governor Ric Battellino was to speak in New York. In addition, the U.S. was to publish industry data on existing home sales.
AUD/USD hit 1.0234 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0267, slipping 0.09%.
The pair was likely to find support at 1.0166, the low of September 19 and resistance at 1.0345, the high of September 15.
On Tuesday, the International Monetary Fund downgraded its global growth outlook for 2012 to 4% from a previous estimate of 4.3%, saying that the world economy has entered a "dangerous new phase".
Meanwhile, speculation mounted that Federal Reserve Chairman Ben Bernanke would announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist after the central bank’s policy setting meeting later in the day.
The Aussie found support after a report showed that China's Conference Board Leading Economic Index rose by 0.6% in July to 158.6, following a 0.9% increase in June and a 0.4% increase in May. China is Australia’s largest export destination.
The Aussie was also lower against the yen, with AUD/JPY shedding 0.38% to hit 78.28.
Later in the day, Reserve Bank of Australia Deputy Governor Ric Battellino was to speak in New York. In addition, the U.S. was to publish industry data on existing home sales.