Investing.com - The Australian dollar edged lower against its U.S. counterpart on Wednesday, after the release of disappointing inflation data from Australia, while Tuesday's downbeat economic reports from the euro zone continued to weigh.
AUD/USD hit 1.0232 during late Asian trade, the session low; the pair subsequently consolidated at 1.0244, slipping 0.19%.
The pair was likely to find support at 1.0211, the low of March 11 and resistance at 1.0308, the high of April 22.
Official data earlier showed that Australia's consumer price index rose 0.4% in the first quarter, less than the expected 0.7% increase, after a 0.2% rise in the previous quarter.
In addition, the Reserve Bank of Australia said the trimmed mean consumer price index rose 0.3% in the last quarter, compared to expectations for a 0.5% gain, after an increase of 0.6% in the fourth quarter.
Meanwhile, markets were jittery as expectations for a rate cut by the European Central Bank mounted on Tuesday after data showing that Germany’s manufacturing and service sectors contracted in April fuelled fears over the outlook for growth in the euro zone’s largest economy.
The Aussie was also lower against the New Zealand dollar, with AUD/NZD retreating 0.63% to hit 1.2140.
Also Wednesday, the Reserve Bank of New Zealand held the benchmark interest rate at 2.50%, in a widely expected move.
Commenting on the decision RBNZ Governor Graeme Wheeler said economic growth has accelerated but the bank remains concerned about rising home prices.
Later in the day, the U.S. was to produce government data on durable goods orders.
AUD/USD hit 1.0232 during late Asian trade, the session low; the pair subsequently consolidated at 1.0244, slipping 0.19%.
The pair was likely to find support at 1.0211, the low of March 11 and resistance at 1.0308, the high of April 22.
Official data earlier showed that Australia's consumer price index rose 0.4% in the first quarter, less than the expected 0.7% increase, after a 0.2% rise in the previous quarter.
In addition, the Reserve Bank of Australia said the trimmed mean consumer price index rose 0.3% in the last quarter, compared to expectations for a 0.5% gain, after an increase of 0.6% in the fourth quarter.
Meanwhile, markets were jittery as expectations for a rate cut by the European Central Bank mounted on Tuesday after data showing that Germany’s manufacturing and service sectors contracted in April fuelled fears over the outlook for growth in the euro zone’s largest economy.
The Aussie was also lower against the New Zealand dollar, with AUD/NZD retreating 0.63% to hit 1.2140.
Also Wednesday, the Reserve Bank of New Zealand held the benchmark interest rate at 2.50%, in a widely expected move.
Commenting on the decision RBNZ Governor Graeme Wheeler said economic growth has accelerated but the bank remains concerned about rising home prices.
Later in the day, the U.S. was to produce government data on durable goods orders.