Investing.com - The Australian dollar fell sharply against its U.S. counterpart on Monday, as an intervention by the Bank of Japan to stem the strong appreciation of the yen boosted demand for the greenback.
AUD/USD hit 1.0507 during late Asian trade, the pair's lowest since October 27; the pair subsequently consolidated at 1.0568, tumbling 1.22%.
The pair was likely to find support at 1.0379, the low of October 27 and resistance at 1.0764, the high of September 1.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
Meanwhile, market sentiment weakened as investors worried that European leaders' plans to bolster the region's lenders could fail, as the region's largest banks seemed ready to raise only a tenth of the total capital shortfall estimated.
Also Monday, official data showed that private sector credit in Australia rose unexpectedly in September, ticking up 0.5% after a 0.2% increase the previous month.
Analysts had expected the increase in private sector credit to remain unchanged in September.
The Aussie was down against the New Zealand dollar with AUD/NZD declining 0.43%, to trade at 1.2978.
Later in the day, the U.S was to produce a report on manufacturing activity in the Chicago area.
AUD/USD hit 1.0507 during late Asian trade, the pair's lowest since October 27; the pair subsequently consolidated at 1.0568, tumbling 1.22%.
The pair was likely to find support at 1.0379, the low of October 27 and resistance at 1.0764, the high of September 1.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
Meanwhile, market sentiment weakened as investors worried that European leaders' plans to bolster the region's lenders could fail, as the region's largest banks seemed ready to raise only a tenth of the total capital shortfall estimated.
Also Monday, official data showed that private sector credit in Australia rose unexpectedly in September, ticking up 0.5% after a 0.2% increase the previous month.
Analysts had expected the increase in private sector credit to remain unchanged in September.
The Aussie was down against the New Zealand dollar with AUD/NZD declining 0.43%, to trade at 1.2978.
Later in the day, the U.S was to produce a report on manufacturing activity in the Chicago area.