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Forex- Aussie dollar falls on growth concerns

Published 12/18/2012, 11:41 PM
Updated 12/18/2012, 11:43 PM
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Investing.com- The Australian dollar extended declines against its U.S. counterpart during Wednesday’s Asian session as traders continued to fret about the growth outlook for Australia’s economy.

In Asian trading Wednesday, AUD/USD was off 0.16% at 1.0518. The pair traded as high as 1.0534 at the open and traded as low as 1.0505. The pair was likely to find support at 1.0509, the low of December 13 and resistance at 1.0577, the high of December 14. AUD/USD slipped modestly during Tuesday’s U.S. session.

During Tuesday’s Asian session, the minutes of the Reserve Bank of Australia's latest policy meeting showed that a softer job market gave the board more room to provide additional support to demand.

Earlier in Wednesday’s Asian session, Westpac Banking Corp. and the Melbourne Institute said their survey of future Australian economic output rose 0.1% to 285.7 in October. However, ANZ Bank said the Australian economic outlook for 2013 remains soft. The bank cited declining investment in Australia's mining sector, high labor costs and a strong Australian dollar as reasons for its glum outlook.

Elsewhere, NZD/USD fell 0.23% to 0.8396 after Statistics New Zealand said that New Zealand’s current account balance fell to a seasonally adjusted NZD-4.42 billion, from NZD-1.80 billion in the preceding quarter.

The Australian and New Zealand dollars were also seen giving back gains against the yen ahead of the Bank of Japan meeting, which starts today. Despite the fact that traders widely expect BoJ to announce new monetary easing measures, AUD/JPY was off 0.11% at 88.61. NZD/JPY shed 0.2% to 70.73.

EUR/AUD surged 0.31% to 1.2599 while EUR/NZD climbed 0.39% to 1.5786.


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