Investing.com - The Australian dollar continued to trade lower against its U.S. counterpart during Tuesday’s Asian session ahead of some important data points out of the world’s largest economy later Tuesday.
In Asian trading Tuesday, AUD/USD fell 0.16% to 0.9639. The pair was likely to find support at 0.9594, the low of May 23 and an 11-month low and resistance at 0.9708, the high of May 24.
Later Tuesday, the U.S. is scheduled to report data on house price inflation, in addition to data on consumer confidence.
Traders are speculating that if those reports, among others due out from the U.S. this week, are strong then the Federal Reserve will have more leeway with which to begin winding down its quantitative easing program.
The Aussie continues to hover near 11-month lows as speculation over a possible near-term end to the Federal Reserve's bond purchasing program.
The Fed’s stimulus programs have previously weakened the dollar with the intent of bolstering riskier assets, a scenario the Aussie has benefited from. As the dollar lost strength, traders poured into the Aussie due to Australia’s pristine AAA credit rating and interest rates that are high relative to the rest of the developed world.
The air has come out of the trade in recent weeks and earlier Tuesday, the National Australia Bank said the only currency in the world that has performed worse than the Aussie since April 12 is the Syrian pound.
Elsewhere, AUD/JPY dropped 0.35% to 97.44 while AUD/NZD fell 0.15% to 1.1917.
In Asian trading Tuesday, AUD/USD fell 0.16% to 0.9639. The pair was likely to find support at 0.9594, the low of May 23 and an 11-month low and resistance at 0.9708, the high of May 24.
Later Tuesday, the U.S. is scheduled to report data on house price inflation, in addition to data on consumer confidence.
Traders are speculating that if those reports, among others due out from the U.S. this week, are strong then the Federal Reserve will have more leeway with which to begin winding down its quantitative easing program.
The Aussie continues to hover near 11-month lows as speculation over a possible near-term end to the Federal Reserve's bond purchasing program.
The Fed’s stimulus programs have previously weakened the dollar with the intent of bolstering riskier assets, a scenario the Aussie has benefited from. As the dollar lost strength, traders poured into the Aussie due to Australia’s pristine AAA credit rating and interest rates that are high relative to the rest of the developed world.
The air has come out of the trade in recent weeks and earlier Tuesday, the National Australia Bank said the only currency in the world that has performed worse than the Aussie since April 12 is the Syrian pound.
Elsewhere, AUD/JPY dropped 0.35% to 97.44 while AUD/NZD fell 0.15% to 1.1917.