Investing.com – The Australian dollar fell against its U.S. rival during Wednesday’s Asian on the back of a disappointing fourth-quarter construction report from down under.
In Asian trading Wednesday, AUD/USD fell 0.13% to 1.0216. The pair was likely to find support at 1.0221, the low of February 21 and resistance at 1.0292, the session high.
Earlier today, report from the Australian Bureau of Statistics said fourth-quarter construction spending there fell to -0.1% on a seasonally adjusted basis from 1.9% in the third quarter. Analysts expected the fourth-quarter reading to fall to 1.5%.
Total construction work done in the fourth quarter, including residential and commercial real estate rose, 1.8% from the third quarter. However, engineering work, including that related to Australia’s mining industry, declined 1.3%.
On Tuesday, Reserve Bank of Australia board member Roger Corbett became the latest RBA member to dash hopes for weakening the Aussie. In press interviews, Corbett said fiscal and monetary policy should not be altered just to weaken the dollar.
Those comments are not likely to be met with open arms from Australian manufacturers and exporters because those firms are most vulnerable to the pressures of a strong Aussie.
Earlier Tuesday, RBA member Guy Debelle expressed concern about the impact RBA intervention in the currency market would have. Australia has cut 175 basis points off its over night cash right since late 2011, but those moves have done little to stem the tide of the rising dollar.
In his remarks, Corbett said RBA feels the world economy is improving, bad added Australia must do more to facilitate growth in non-mining sectors, a familiar refrain in recent weeks from the country’s policymakers and bankers.
Elsewhere, EUR/AUD fell 0.04% to 1.2766 while AUD/JPY dropped 0.28% to 93.82. AUD/NZD fell 0.12% to 1.2391.
In Asian trading Wednesday, AUD/USD fell 0.13% to 1.0216. The pair was likely to find support at 1.0221, the low of February 21 and resistance at 1.0292, the session high.
Earlier today, report from the Australian Bureau of Statistics said fourth-quarter construction spending there fell to -0.1% on a seasonally adjusted basis from 1.9% in the third quarter. Analysts expected the fourth-quarter reading to fall to 1.5%.
Total construction work done in the fourth quarter, including residential and commercial real estate rose, 1.8% from the third quarter. However, engineering work, including that related to Australia’s mining industry, declined 1.3%.
On Tuesday, Reserve Bank of Australia board member Roger Corbett became the latest RBA member to dash hopes for weakening the Aussie. In press interviews, Corbett said fiscal and monetary policy should not be altered just to weaken the dollar.
Those comments are not likely to be met with open arms from Australian manufacturers and exporters because those firms are most vulnerable to the pressures of a strong Aussie.
Earlier Tuesday, RBA member Guy Debelle expressed concern about the impact RBA intervention in the currency market would have. Australia has cut 175 basis points off its over night cash right since late 2011, but those moves have done little to stem the tide of the rising dollar.
In his remarks, Corbett said RBA feels the world economy is improving, bad added Australia must do more to facilitate growth in non-mining sectors, a familiar refrain in recent weeks from the country’s policymakers and bankers.
Elsewhere, EUR/AUD fell 0.04% to 1.2766 while AUD/JPY dropped 0.28% to 93.82. AUD/NZD fell 0.12% to 1.2391.