Forex - AUD/USD lower after RBA minutes, Greek deal

Published 02/21/2012, 03:02 AM
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Investing.com - The Australian dollar was lower against its U.S. counterpart on Tuesday, after the minutes of the Reserve Bank of Australia’s February policy meeting while the announcement of a Greek bailout deal failed to boost risk sentiment.

AUD/USD hit 1.0680 during late Asian trade, the pair’s lowest since February 16; the pair subsequently consolidated at 1.0722, shedding 0.31%.

The pair was likely to find support at 1.0628, the low of February 14 and resistance at 1.0773, the high of February 16.

In the minutes of its February meeting, the RBA said it remained willing to ease policy if commodity and raw material demand were to “weaken materially” although it left rates unchanged this month.

“While the financial situation in Europe remains fragile, the likelihood of an extremely bad outcome seems to have diminished somewhat,” the report added.

The central bank held its benchmark interest rate at 4.25% this month, after two successive 0.25% cuts late 2011.

Meanwhile, sentiment briefly improved earlier after euro zone finance ministers agreed on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020 and shield the country from a default.

But investors remained cautious amid uncertainty over Greece’s ability to meet the terms of the deal and pay off even its reduced debt burden.

The Aussie was lower against the euro with EUR/AUD rising 0.38%, to hit 1.2360.

Also Tuesday, European Union finance ministers were scheduled to meet throughout the day.


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