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Forex - AUD/USD steady, focus on EU talks

Published 05/22/2012, 03:05 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar was steady against its U.S. counterpart on Tuesday, as investors remained cautious ahead of a key European Union summit on Wednesday, but gains were limited as concerns over a possible Greek exit from the euro zone persisted.

AUD/USD hit 0.9930 during late Asian trade, the pair’s highest since May 17; the pair subsequently consolidated at 0.9922, adding 0.07%.

The pair was likely to find support at 0.9869, the low of May 16 and a five-month low and resistance at 0.9987, the high of December 19.

Markets were jittery ahead of a meeting of European leaders on Wednesday, with hopes they may agree on measures to bolster investor confidence in the single currency bloc.

France's new President Francois Hollande is expected to push for a joint euro zone bond at the EU meeting, a measure backed by Italy, Spain and the European Commission but opposed by Germany.

Elsewhere, the Aussie was also steady against the New Zealand dollar with AUD/NZD inching down 0.06%, to hit 1.2947.

Also Tuesday, the Reserve Bank of New Zealand said earlier that inflation expectations ticked down to 2.4% in the first quarter, from 2.5% in the previous quarter.

Later in the day, the U.S. was to release industry data on existing home sales.


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