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Forex - AUD/USD falls in risk-off trade

Published 08/27/2013, 02:51 AM
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, amid ongoing uncertainty over the future of the Federal Reserve's stimulus program.

AUD/USD hit 0.8946 during late Asian trade, the pair's lowest since August 22; the pair subsequently consolidated at 0.8955, declining 0.81%.

The pair was likely to find support at 0.8907, the low of August 6 and resistance at 0.9070, Monday's high.

Uncertainty over how soon the Fed will start to unwind stimulus measures continued after data on Monday showed that U.S. durable goods orders fell in July, raising concerns over domestic demand.

The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.

The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.

Separately, markets were also jittery after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.

The Aussie was also lower against the euro with EUR/AUD advancing 0.75%, to hit 1.4923.

Later in the day, the U.S. was to publish private sector data on house price inflation, as well as a closely watched report on consumer confidence.


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