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Forex - AUD/USD steady amid ongoing E.Z. worries

Published 12/13/2011, 02:57 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar was almost unchanged against its U.S. counterpart on Tuesday, as investors remained concerned over the handling of the debt crisis in the euro zone after last week’s summit.

AUD/USD hit 1.0107 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0101, inching up 0.28%.

The pair was likely to find support at 0.9972, the low of November 17 and resistance at 1.0183, the high of November 16.

Market sentiment was hit after rating agencies warned on Monday that last week's European Union summit did not go far enough in easing immediate concerns about the region's debt woes.

Moody’s said it intended to review ratings of all EU member states in the first quarter of 2012, while Standard and Poor’s still threatened to downgrade the ratings of 15 euro zone nations.

Earlier Tuesday, the National Australia Bank said its index of business confidence remained unchanged at 2 in November, lifted by mining, retail and services sectors.

Elsewhere, official data showed that Japan’s tertiary industry activity rose more-than-expected in October, ticking up 0.6% after a 0.7% decline the previous month.

Japan is Australia’s biggest export partner.

The Aussie was higher against the euro with EUR/AUD shedding 0.27%, to hit 1.3057.

Later in the day, the U.S. was to publish official data on retail sales. The Federal Reserve was also to announce its federal funds rate.

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