Investing.com - The Australian dollar edged lower against its U.S. counterpart on Wednesday, but losses were limited as market sentiment improved after Italian Prime Minister Mario Monti eased concerns over the handling of the debt crisis in the euro zone.
AUD/USD hit 1.0414 during late Asian trade, the pair’s lowest since March 23; the pair subsequently consolidated at 1.0444, shedding 0.14%.
The pair was likely to find support at 1.0371, the low of March 23 and resistance at 1.0526, the high of March 21.
The Aussie found support after Italian Prime Minister Mario Monti said the euro zone’s debt woes are “almost over”.
Monti also said that the root cause of the crisis in the region could be traced back to an early decision by European Union ministers not to punish Germany and France when they flouted fiscal rules.
Meanwhile, the Reserve Bank of Australia warned the country’s lenders to be cautious in their quest for profits, despite a dramatic improvement in global financial conditions this year.
In its biannual Financial Stability Review, the RBA said the injection of around EUR1 trillion into Europe's financial system by the European Central Bank had stabilized that region's banks and the global financial system.
The bank added, however, that profit growth for Australian banks would remain subdued because Australian consumers were paying down debt more than they were taking it on.
Elsewhere, the Aussie was lower against the euro with EUR/AUD rising 0.51%, to hit 1.2795.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.
AUD/USD hit 1.0414 during late Asian trade, the pair’s lowest since March 23; the pair subsequently consolidated at 1.0444, shedding 0.14%.
The pair was likely to find support at 1.0371, the low of March 23 and resistance at 1.0526, the high of March 21.
The Aussie found support after Italian Prime Minister Mario Monti said the euro zone’s debt woes are “almost over”.
Monti also said that the root cause of the crisis in the region could be traced back to an early decision by European Union ministers not to punish Germany and France when they flouted fiscal rules.
Meanwhile, the Reserve Bank of Australia warned the country’s lenders to be cautious in their quest for profits, despite a dramatic improvement in global financial conditions this year.
In its biannual Financial Stability Review, the RBA said the injection of around EUR1 trillion into Europe's financial system by the European Central Bank had stabilized that region's banks and the global financial system.
The bank added, however, that profit growth for Australian banks would remain subdued because Australian consumers were paying down debt more than they were taking it on.
Elsewhere, the Aussie was lower against the euro with EUR/AUD rising 0.51%, to hit 1.2795.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.