Investing.com – The Australian dollar was down against its U.S. counterpart on Tuesday, tumbling to a 12-day low as fears over sovereign debt in peripheral euro zone nations curbed risk appetite.
AUD/USD hit 0.9801 during European morning trade, the pair’s lowest since October 29; the pair subsequently consolidated at 0.9814, shedding 0.38%.
The pair was likely to find support at 0.9715, the low of October 28 and resistance at 0.9919, Monday’s high.
Earlier in the day the Reserve Bank of Australia published the minutes of its November monetary policy meeting. The RBA said its decision to tighten policy was finely balanced as mining investment, job growth and overseas demand helped propel the nation’s economy.
“A gradual upward trend in inflation remained likely over the medium term,” policy makers said in the minutes. “If monetary policy was to be conducted in a forward-looking way, these developments meant there was a case for increasing interest rates at the current meeting.”
The RBA increased its benchmark interest rate to 4.75% in early November, after a five-month pause.
The Aussie was also down against the euro, with EUR/AUD gaining 0.56% to hit 1.3866.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production, as well as a report on the capacity utilization rate.
AUD/USD hit 0.9801 during European morning trade, the pair’s lowest since October 29; the pair subsequently consolidated at 0.9814, shedding 0.38%.
The pair was likely to find support at 0.9715, the low of October 28 and resistance at 0.9919, Monday’s high.
Earlier in the day the Reserve Bank of Australia published the minutes of its November monetary policy meeting. The RBA said its decision to tighten policy was finely balanced as mining investment, job growth and overseas demand helped propel the nation’s economy.
“A gradual upward trend in inflation remained likely over the medium term,” policy makers said in the minutes. “If monetary policy was to be conducted in a forward-looking way, these developments meant there was a case for increasing interest rates at the current meeting.”
The RBA increased its benchmark interest rate to 4.75% in early November, after a five-month pause.
The Aussie was also down against the euro, with EUR/AUD gaining 0.56% to hit 1.3866.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production, as well as a report on the capacity utilization rate.