Investing.com - The Australian dollar dropped to fresh six-month lows against its U.S. counterpart on Monday, as expectations for an early rate hike by the Federal Reserve continued to support demand for the greenback.
AUD/USD hit 0.8950 during late Asian trade, the pair's lowest since March; the pair subsequently consolidated at 0.8909, shedding 0.23%.
The pair was likely to find support at 0.8728 and resistance at 0.8996, the high of September 18.
The greenback remained supported as signs that the economic recovery is making solid progress fuelled expectations that the Fed will hike interest rates sooner than markets are expecting.
Last week, the Fed offered fresh guidance on its plans to raise interest rates, outlining in more detail how it will start to raise short term interest rates when the time comes.
The Aussie was lower against the euro, with EUR/AUD gaining 0.45% to 1.4434.
Later in the day, the U.S. was to release data on existing home sales.