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Forex - AUD/USD slides lower as declining oil prices weigh

Published 01/26/2016, 02:17 AM
Aussie loses ground vs. greenback as Asia stock markets plunge
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Investing.com - The Australian dollar slid lower against its U.S. counterpart on Tuesday, as declining oil prices pushed Asian stock markets broadly lower, while investors awaited the Federal Reserve’s policy statement on Wednesday.

Markets in Australia remained closed on Tuesday for Australia Day.

AUD/USD hit 0.6919 during late Asian trade, the pair’s lowest since January 21; the pair subsequently consolidated at 0.6440, sliding 0.33%.

The pair was likely to find support at 0.6873, the low of January 21 and resistance at 0.7031, Monday’s high.

Asian stocks closed broadly lower as oil prices fell below $30 a barrel once again on Tuesday, amid ongoing concerns over a global supply glut and slowing global demand.

The Fed is expected to keep interest rate on hold at the conclusion of its latest meeting on Wednesday after raising interest rates for the first time in almost a decade in December.

Investors are looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil.

Market participants were also eyeing the release of U.S. consumer confidence data due later in the day, for further indications on the strength of the economy.

The Aussie was also lower against the euro, with EUR/AUD rising 0.38% to 1.5656.

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