Investing.com - The Australian dollar is trading lower against its U.S. rival during Monday’s Asian session following news that the small euro zone nation of Cyprus postponed a key debate pertaining to a controversial levy on the country’s bank deposits that sent citizens there scurrying to withdraw their cash. Those headlines are plaguing riskier currencies throughout the developed world, including the Aussie.
In Asian trading Monday, AUD/USD fell 0.60% to 1.3051. The pair is likely to find support at 1.0286, the low from March 14 and resistance at 1.0456, the high from February 5. AUD/USD jumped 1.64% last week.
EUR/AUD slid 0.75% to 1.2466 after Cyprus’ parliament delayed a vote on the issue although there are rumors the European Central Bank is pressuring the tiny island nation to hold the vote immediately. Cyprus is home to just 1 million people.
The 16 other euro zone nations and the International Monetary Fund are seeking to levy a one-time 6.75% tax on all deposits to Cyprus banks under EUR100,000. That plan is expected to raise EUR5.8 billion to help the country’s ailing banks. Cyprus’ banks are in peril after losing EUR4.5 billion on investments in Greek bonds.
The levy plan also includes a 9.9% tax on deposits of over EUR100,000. The plan is seen as a bailoutat the expense of ordinary citizens in Cyprus, which could hasten a run on the country’s banks.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program. Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
On Tuesday, the Reserve Bank of Australia is to publish the minutes of its most recent policy meeting.
Elsewhere, AUD/JPY slid 1.14% to 98.12 while AUD/NZD rose 0.05% to 1.2590.
In Asian trading Monday, AUD/USD fell 0.60% to 1.3051. The pair is likely to find support at 1.0286, the low from March 14 and resistance at 1.0456, the high from February 5. AUD/USD jumped 1.64% last week.
EUR/AUD slid 0.75% to 1.2466 after Cyprus’ parliament delayed a vote on the issue although there are rumors the European Central Bank is pressuring the tiny island nation to hold the vote immediately. Cyprus is home to just 1 million people.
The 16 other euro zone nations and the International Monetary Fund are seeking to levy a one-time 6.75% tax on all deposits to Cyprus banks under EUR100,000. That plan is expected to raise EUR5.8 billion to help the country’s ailing banks. Cyprus’ banks are in peril after losing EUR4.5 billion on investments in Greek bonds.
The levy plan also includes a 9.9% tax on deposits of over EUR100,000. The plan is seen as a bailoutat the expense of ordinary citizens in Cyprus, which could hasten a run on the country’s banks.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program. Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
On Tuesday, the Reserve Bank of Australia is to publish the minutes of its most recent policy meeting.
Elsewhere, AUD/JPY slid 1.14% to 98.12 while AUD/NZD rose 0.05% to 1.2590.