Forex - AUD/USD slips lower, Fed comments support

Published 01/15/2013, 03:00 AM
Updated 01/15/2013, 03:02 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Tuesday, as U.S. debt concerns re-emerged, although comments by Federal Reserve Chairman Ben Bernanke lifted investor confidence.

AUD/USD hit 1.0541 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0554, slipping 0.09%.

The pair was likely to find support at 1.0494, the low of January 10 and resistance at 1.0591, the high of January 11.

In a speech on the economy and monetary policy on Monday, Federal Reserve Chairman Ben Bernanke said that he was still unsatisfied with the economy’s progress, despite some recent signs of improvement.

Earlier Monday, the president of the San Francisco Federal Reserve Bank said he expected the Fed to continue its bond buying program "well into the second half of 2013."

But investors remained cautious, as negotiations on raising the U.S. debt ceiling were coming up in February.

The Aussie was fractionally higher against the New Zealand dollar, with AUD/NZD edging up 0.08%, to hit 1.2542.

Also Tuesday, the New Zealand Institute of Economic Research said its index of business confidence rose to 20 in th fourth quarter of 2012, from a reading of 8 in the previous quarter.

Later in the day, the U.S. was to publish government data on retail sales, as well as official data on producer price inflation and manufacturing activity in New York state.


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