Investing.com - The Australian dollar fell to a four-month low against its U.S. counterpart on Wednesday, as concerns over the handling of the euro zone’s debt crisis following weekend elections in Greece and France continued to weigh on risk sentiment.
AUD/USD hit 1.0053 during late Asian trade, the pair’s lowest since December 29; the pair subsequently consolidated at 1.0086, declining 0.33%.
The pair was likely to find support at 1.0043, the low of December 29 and resistance at 1.0122, the session high.
Markets were jittery after the leader of Greece's Left Coalition party said on Tuesday that the country's commitment to a European Union/International Monetary Fund rescue deal had become null and void.
Greece's two main pro-bailout parties failed to win a majority in weekend elections, leaving questions over the country's ability to avert bankruptcy and stay in the euro.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Also Wednesday, Australia’s Prime Minister Julia Gillard said that the government will cut spending for the first time in 42 years, ending four years of budget deficits and giving the central bank flexibility to lower interest rates.
The comments came after official data showed on Tuesday that Australia’s trade deficit more than doubled in March, widening to AUD1.59 billion from deficit of AUD0.75 billion the previous month.
The Aussie was also lower against the euro with EUR/AUD adding 0.17%, to hit 1.2873.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.
AUD/USD hit 1.0053 during late Asian trade, the pair’s lowest since December 29; the pair subsequently consolidated at 1.0086, declining 0.33%.
The pair was likely to find support at 1.0043, the low of December 29 and resistance at 1.0122, the session high.
Markets were jittery after the leader of Greece's Left Coalition party said on Tuesday that the country's commitment to a European Union/International Monetary Fund rescue deal had become null and void.
Greece's two main pro-bailout parties failed to win a majority in weekend elections, leaving questions over the country's ability to avert bankruptcy and stay in the euro.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Also Wednesday, Australia’s Prime Minister Julia Gillard said that the government will cut spending for the first time in 42 years, ending four years of budget deficits and giving the central bank flexibility to lower interest rates.
The comments came after official data showed on Tuesday that Australia’s trade deficit more than doubled in March, widening to AUD1.59 billion from deficit of AUD0.75 billion the previous month.
The Aussie was also lower against the euro with EUR/AUD adding 0.17%, to hit 1.2873.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.