Forex - AUD/USD falls to 3-day low after Fitch decision

Published 01/30/2012, 02:59 AM
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Investing.com - The Australian dollar fell to a three-day low against its U.S. counterpart on Monday, after Fitch ratings agency placed four Australian banks on review while concerns over talks to restructure Greek debt persisted.

AUD/USD hit 1.0546 during late Asian trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.0561, shedding 0.89%.

The pair was likely to find support at 1.0458, the low of January 23 and resistance at 1.0687, the high of January 26.

Fitch placed Australia's four major banks on review for possible downgrade, citing weaker funding profiles than similarly rated peers and saying any downgrades would be "most likely" limited to one notch.

Sentiment was also hit after Greek Finance Minister Evangelos Venizelos rejected on Sunday a German proposal to have a European Union commission review the country’s budget policy.

Earlier Monday, German Finance Minister Wolfgang Schaeuble said in the Wall Street Journal that the euro zone may refuse to grant Greece a fresh bailout unless it convinces Europe that it can fully implement commitments attached to earlier bailout packages.

Meanwhile, European Union leaders were to gather later in the day to finalize discussions on a German-led deficit-control treaty and sign off on a EUR500 billion permanent rescue fund to be set up this year.

Elsewhere, the Aussie was lower against the euro with EUR/AUD rising 0.39%, to hit 1.2454.

Later in the day, the U.S. was to publish government data on personal spending and the consumer price index.


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