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Forex - AUD/USD hits 5-month low as Greece turmoil weighs

Published 05/14/2012, 03:09 AM
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Investing.com - The Australian dollar tumbled to a five-month low against its U.S. counterpart on Monday, as risk sentiment remained under pressure amid ongoing political and financial turmoil in Greece.

AUD/USD hit 0.9996 during late Asian trade, the pair’s lowest since December 20; the pair subsequently consolidated at 1.0003, slipping 0.16%.

The pair was likely to find support at 0.9919, the low of December 16 and resistance at 1.0083, the high of May 11.

Greece's party leaders failed on Sunday to bridge differences in a marathon effort to form a coalition government, spurring the president to call a last-ditch meeting for Monday in an attempt to break a week-long political impasse amid fears the country may be forced out of the euro zone.

A new round of elections seemed the most likely however as radical left Syriza party declined to participate in Monday's talks.

Adding to concerns, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.

Earlier in the day, official data showed that home loans in Australia rose unexpectedly in March, adding 0.3% after a 2.5% decline the previous month.

Analysts had expected home loans to fall 1.8% in March.

The Aussie was higher against the New Zealand dollar with AUD/NZD adding 0.21%, to hit 1.2825.

Also Monday, official data showed that New Zealand retail sales fell 1.5%, more than expectations for a 0.7% decline and following a 1.8% rise in the fourth quarter.

Later in the day, the U.S. was to produce industry data on mortgage delinquencies.  


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