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Forex - AUD/USD trims losses, eases off 4-day low

Published 04/12/2011, 02:58 AM
AUD/USD
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AUD/JPY
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Investing.com – The Australian dollar trimmed losses against its U.S. counterpart on Tuesday, easing off a four-day low hit after Japan raised the severity rating of its nuclear crisis, sapping demand for higher yielding assets.

AUD/USD pulled back from 1.0391, the pair’s lowest since April 6, to hit 1.0440 during late Asian trade, down 0.53% on the day.

The pair was likely to find support at 1.0312, the low of April 6 and resistance at 1.0510, the days high.

Earlier in the day, an official at Japan's Nuclear and Industrial Safety Agency said the total amount of radiation leaks from its Fukushima Daiichi power plant may exceed that of the 1986 Chernobyl disaster. The announcement came as the second major aftershock in a day hit the country.

The Australian dollar remained well supported by expectations that demand for the country’s commodity exports will keep increasing.

The Aussie was sharply lower against the safe haven yen, with AUD/JPY tumbling 1.31% to hit 87.61.

Also Tuesday, National Australia Bank said its index of business conditions business conditions was positive in March for the first time in three months, rising 11 points to nine points, as the economy recovered from Queensland’s flood disaster.

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