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Forex - AUD/USD hits 2-week low amid Greece concerns

Published 11/03/2011, 04:16 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar was down against its U.S. counterpart on Thursday, falling to a two-week low as investors remained concerned over the handling of the debt crisis in the euro zone ahead of Greece's bailout referendum.

AUD/USD hit 1.0204 during late Asian trade, the pair's lowest since October 20; the pair subsequently consolidated at 1.0242, declining 1.02%.

The pair was likely to find support at 1.0101, the low of October 13 and resistance at 1.0376, the high of October 21.

The risk-related Aussie remained under pressure after French and German leaders said that Greece would not receive further European aid until it decides whether it wants to stay in the euro zone.

Earlier Thursday, official data showed that retail sales in Australia rose less-than-expected in September, ticking up 0.4% after a 0.6% increase the previous month.

Analysts had expected Australian retail sales to rise 0.5% in September.

Meanwhile, the U.S. dollar remained supported after the Federal Reserve said Wednesday that "economic growth strengthened somewhat in the third quarter," but also warned that "significant downside risks" remain to the outlook.

The Aussie was down against the New Zealand dollar with AUD/NZD shedding 0.21%, to trade at 1.0246.

Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.

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