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Forex - AUD/USD lower after disappointing Australian data

Published 01/23/2013, 02:54 AM
Updated 01/23/2013, 02:55 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Wednesday, after the release of disappointing economic data from Australia, while concerns over the U.S. debt ceiling persisted.

AUD/USD hit 1.0528 during late Asian trade, the session low; the pair subsequently consolidated at 1.0553, edging down 0.12%.

The pair was likely to find support at 1.0505, Tuesday's low and resistance at 1.0580, the high of January 16.

Official data showed that consumer price inflation in Australia rose less-than-expected in the fourth quarter, ticking up 0.2% after a 1.4% rise in the previous quarter.

Analysts had expected consumer price inflation to rise 0.4% in the last quarter.

Meanwhile, investors remained cautious amid rumors some large German banks could be asked to split their investment banking operations.

Markets were also eyeing U.S. budget negotiations after Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit allowing the government to borrow enough to meet its obligations during that period.

The Aussie was steady against the euro with EUR/AUD inching down 0.05%, to hit 1.2601.

Later in the day, the U.S. was to release government data on crude oil stockpiles, while the World Economic Forum was to continue for a second day in Davos, Switzerland.


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