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Forex - AUD/USD falls after downbeat Australian data

Published 05/13/2014, 02:53 AM
Aussie slips lower vs. greenback on weak data
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar fell against its U.S. counterpart on Tuesday, weighed by the release of downbeat Australian and Chinese data, while concerns over tensions in Ukraine continued to dampen demand for risk-related assets.

AUD/USD hit 0.9335 during late Asian trade, the pair's lowest since May 8; the pair subsequently consolidated at 0.9340, slipping 0.23%.

The pair was likely to find support at 0.9271, the low of May 6 and resistance at 0.9417, the high of April 15.

Official data showed that house price inflation in Australia rose 1.7% in the first quarter, compared to expectations for a 2.9% increase. House price inflation in the three months to December was revised up to a 3.8% rise from a previously estimated 3.4% increase.

A separate report showed that home loans in Australia slid 0.9% in March, confounding expectations for a 1.1% rise, after a 2.3% increase the previous month.

Elsewhere, data showed that industrial production and retail sales in China slowed slightly in April, adding to concerns over a slowdown in the world’s second-largest economy.

China is Australia's biggest export partner.

Meanwhile, investors remained cautious after pro-Russian separatists in the eastern Ukrainian city of Donetsk formally asked the Moscow to annex the region like it did with Crimea.

The Aussie was lower against the euro, with EUR/AUD rising 0.28% to 1.4736.

Later in the day, the U.S. was to produce data on retail sales, as well as reports on import prices and business inventories.

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