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Forex - AUD/USD slides lower in cautious trade

Published 04/17/2013, 02:57 AM
Updated 04/17/2013, 03:08 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar slid lower against its U.S. counterpart on Wednesday, as market sentiment weakened after the International Monetary Fund cut its growth forecasts, although U.S. data lent mild support.

AUD/USD hit 1.0340 during late Asian trade, the session low; the pair subsequently consolidated at 1.0363, losing 0.28%.

The pair was likely to find support at 1.0291, the low of April 15 and resistance at 1.0397, Tuesday's high.

On Tuesday, the IMF cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%. It also trimmed its 2014 forecast to 4.0% from 4.1%.

Sentiment remained mildly supported however, after data on Tuesday showed that U.S. industrial production and housing starts rose at a faster-than-forecast pace in March, easing concerns that the U.S. economic recovery is losing traction.

The Aussie was steady against the New Zealand dollar with AUD/NZD dipping 0.03%, to hit 1.2228.

Also Wednesday, official data showed that consumer price inflation in New Zealand rose 0.4% in the first quarter, in line with expectations, after a 0.2% decline in the previous quarter.


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