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Forex - AUD/USD falls to 2-day low ahead of E.Z. meetings

Published 08/22/2012, 02:54 AM
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Investing.com - The Australian dollar fell to a two-day low against its U.S. counterpart on Wednesday, as investors remained cautious ahead of a series of euro zone meetings this week amid speculation that fresh decisions could be made to stem the region’s debt crisis.

AUD/USD hit 1.0434 during late Asian trade, the pair’s lowest since August 20; the pair subsequently consolidated at 1.0441, dropping 0.46%.

The pair was likely to find support at 1.0383, the low of July 27 and resistance at 1.0513, the high of August 15.

Luxemburg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras later Wednesday, to discuss a two-year extension of the country’s economic reform program.

German Chancellor Angela Merkel is to meet with French President Francois Hollande on Thursday, while Antonis Samaras is to meet with the French and German leaders later in the week.

Market participants were also anticipating the minutes of the Federal Reserve’s August policy meeting later in the day, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.

The export-related Aussie also came under pressure after data showed that Japan posted a worse-than-expected trade deficit in July, hurt by the euro zone’s debt crisis and a slowdown in China.

In Australia, the Melbourne Institute said that its index of leading economic indicators rose 0.5% in June, following a revised 0.9% increase the previous month.

Elsewhere, the Aussie was lower against the euro with EUR/AUD rising 0.32%, to hit 1.1930.

Later in the day, the U.S. was to release industry data on existing home sales.


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