Investing.com - The Australian dollar was lower against the U.S. dollar on Wednesday after data showed that the Australian trade deficit was larger than forecast in August and a separate report showed that building approvals fell more-than-expected.
AUD/USD hit 0.9353 during late Asian trade, the session low; the pair subsequently consolidated at 0.9354, shedding 0.46%.
The pair was likely to find support at 0.9280, the low of September 30 and resistance at 0.9434, Tuesday’s high.
The Australian dollar weakened after data showed that the country posted a deficit of AUD0.82 billion in August from a revised deficit of AUD1.38 billion in July. Economists had expected the trade deficit to contract to AUD0.45 billion.
Another report showed the number of building permits issued in August fell 4.7% from a month earlier, following a 10.2% increase in July. Analysts had expected building permits to decline 2%.
Investors remained cautious as worries over the impact of a U.S. government shutdown continued after Congress failed to reach an agreement on a budget bill.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The Aussie was also lower against the euro, with EUR/AUD rising 0.40% to 1.4450.
In the euro zone, Italian Prime Minister Enrico Letta was due before parliament for a vote of confidence later Wednesday, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi.
AUD/USD hit 0.9353 during late Asian trade, the session low; the pair subsequently consolidated at 0.9354, shedding 0.46%.
The pair was likely to find support at 0.9280, the low of September 30 and resistance at 0.9434, Tuesday’s high.
The Australian dollar weakened after data showed that the country posted a deficit of AUD0.82 billion in August from a revised deficit of AUD1.38 billion in July. Economists had expected the trade deficit to contract to AUD0.45 billion.
Another report showed the number of building permits issued in August fell 4.7% from a month earlier, following a 10.2% increase in July. Analysts had expected building permits to decline 2%.
Investors remained cautious as worries over the impact of a U.S. government shutdown continued after Congress failed to reach an agreement on a budget bill.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The Aussie was also lower against the euro, with EUR/AUD rising 0.40% to 1.4450.
In the euro zone, Italian Prime Minister Enrico Letta was due before parliament for a vote of confidence later Wednesday, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi.