Investing.com - The Australian dollar dropped against its U.S. counterpart on Monday, as demand for the greenback remained broadly supported by mounting expectations for a U.S. rate hike before the end of the year.
AUD/USD hit 0.7160 during late Asian trade, the pair's lowest since November 19; the pair subsequently consolidated at 0.7168, retreating 0.98%.
The pair was likely to find support at 0.7098, the low of November 19 and resistance at 0.7250, Friday's high.
Demand for the U.S. dollar continued to be underpinned by expectations that he Federal Reserve is on track to raise interest rates next month.
New York Fed President William Dudley said Friday that there is a "strong case" for hiking rates at the central bank’s next meeting in December as long as economic data continues to remain solid.
Higher U.S. interest rates would make the greenback more attractive to yield-seeking investors.
The Aussie was lower against the euro, with EUR/AUD cimbing 0.65% to 1.4806.