Investing.com – The Australian dollar tumbled to a 7-day low against its U.S. counterpart on Tuesday, after China unexpectedly raised its benchmark interest rate in an effort to stem its rapid rate of growth.
AUD/USD hit 0.9715 during European afternoon trade, the pair’s lowest since October 8; the pair subsequently consolidated at 0.9735, plunging 1.55%.
The pair was likely to find support at 0.9541, the low of October 5 and resistance at 1.0000, the high of October 15 and a record high.
Earlier in the day, China's central bank said it had raised its benchmark deposit and lending rates by 0.25% for the first time since the last hike in December 2007.
The move was likely to slow China's rapid economic growth and dampen demand for raw materials, putting pressure on growth linked currencies, such as the Australian and Canadian dollars.
The Aussie was also down against the euro, with EUR/AUD surging 0.72% to hit 1.4193.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
AUD/USD hit 0.9715 during European afternoon trade, the pair’s lowest since October 8; the pair subsequently consolidated at 0.9735, plunging 1.55%.
The pair was likely to find support at 0.9541, the low of October 5 and resistance at 1.0000, the high of October 15 and a record high.
Earlier in the day, China's central bank said it had raised its benchmark deposit and lending rates by 0.25% for the first time since the last hike in December 2007.
The move was likely to slow China's rapid economic growth and dampen demand for raw materials, putting pressure on growth linked currencies, such as the Australian and Canadian dollars.
The Aussie was also down against the euro, with EUR/AUD surging 0.72% to hit 1.4193.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.