Investing.com – The Australian dollar fell to a five-week low against its U.S. counterpart on Wednesday, following a downward revision to inflation data and as fears over the debt crisis in the euro zone dampened demand for riskier assets.
AUD/USD hit 1.0180 during late Asian trade, the pair’s lowest since August 11; the pair subsequently consolidated at 1.0213, tumbling 0.94%.
The pair was likely to find support at 1.0109, the low of August 11 and resistance at 1.0370, the day’s high.
Earlier in the day, the Australian Bureau of Statistics announced core inflation averaged a seasonally adjusted rise of 0.6% in the second quarter from the first. At the end of July, it reported a rise of 0.9% for the second quarter.
Meanwhile, concerns over the debt crisis in the euro zone mounted after ratings agency Moody’s downgraded the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.
Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy later Wednesday, to discuss developments in Greece.
The Aussie was also lower against the yen, with AUD/USD tumbling 1.02% to hit 78.51.
Also Wednesday, Westpac Bank said its index of Australian consumer sentiment jumped 8.1% September compared with the previous month, boosted by expectations that the central bank won't be hiking borrowing costs in the coming months.
AUD/USD hit 1.0180 during late Asian trade, the pair’s lowest since August 11; the pair subsequently consolidated at 1.0213, tumbling 0.94%.
The pair was likely to find support at 1.0109, the low of August 11 and resistance at 1.0370, the day’s high.
Earlier in the day, the Australian Bureau of Statistics announced core inflation averaged a seasonally adjusted rise of 0.6% in the second quarter from the first. At the end of July, it reported a rise of 0.9% for the second quarter.
Meanwhile, concerns over the debt crisis in the euro zone mounted after ratings agency Moody’s downgraded the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.
Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy later Wednesday, to discuss developments in Greece.
The Aussie was also lower against the yen, with AUD/USD tumbling 1.02% to hit 78.51.
Also Wednesday, Westpac Bank said its index of Australian consumer sentiment jumped 8.1% September compared with the previous month, boosted by expectations that the central bank won't be hiking borrowing costs in the coming months.