Investing.com – The Australian dollar was lower against its U.S. counterpart on Tuesday, as concerns over the euro zone debt crisis weighed, but losses were limited after the central bank’s November meeting minutes said there was a case for “modest” easing.
AUD/USD hit 1.0160 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.0173, sliding 0.30%.
The pair was likely to find support at 1.0051, the low of November 10 and a one-month low and resistance at 1.0303, the high of November 11.
Risk appetite was hit after a rise in Spanish and Italian bond yields on Monday underlined concerns over the ongoing debt crisis in the euro zone.
But the Aussie found support after the Reserve Bank of Australia said the decision to cut interest rates at its November 1 policy meeting reflected a desire for a more neutral monetary policy, but the bank said there had been a case for keeping borrowing costs unchanged to await the effect of an ongoing mining boom.
“It was likely that economic conditions in Europe would weaken further over the period ahead, given the effects of the recent turmoil on confidence, likely tightness of credit supply and the need for further fiscal consolidation,” the bank said.
The Australian dollar was also lower against the yen, with AUD/JPY shedding 0.41% to hit 78.31.
Later Tuesday, the U.S. was to release official data on retail sales and producer price inflation.
AUD/USD hit 1.0160 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.0173, sliding 0.30%.
The pair was likely to find support at 1.0051, the low of November 10 and a one-month low and resistance at 1.0303, the high of November 11.
Risk appetite was hit after a rise in Spanish and Italian bond yields on Monday underlined concerns over the ongoing debt crisis in the euro zone.
But the Aussie found support after the Reserve Bank of Australia said the decision to cut interest rates at its November 1 policy meeting reflected a desire for a more neutral monetary policy, but the bank said there had been a case for keeping borrowing costs unchanged to await the effect of an ongoing mining boom.
“It was likely that economic conditions in Europe would weaken further over the period ahead, given the effects of the recent turmoil on confidence, likely tightness of credit supply and the need for further fiscal consolidation,” the bank said.
The Australian dollar was also lower against the yen, with AUD/JPY shedding 0.41% to hit 78.31.
Later Tuesday, the U.S. was to release official data on retail sales and producer price inflation.