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Forex - Euro hits record low vs. Aussie, 2-year low vs. loonie

Published 04/06/2010, 08:05 AM
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Investing.com – The euro slumped to a record low against the Australian dollar and a 2-year low against its Canadian counterpart on Tuesday, amid rising commodity prices and fresh fears over euro zone sovereign debt.

EUR/AUD plunged to 1.4484 during European morning trade, an all-time low; the pair later consolidated around 1.4517, down 0.82%. EUR/AUD was likely to find resistance at 1.4908, the high of March 29.

The Aussie surged against the single European currency after the Reserve Bank of Australia on Tuesday raised its benchmark interest rate for the fifth time since October. Its climb lifted the Canadian dollar, a fellow commodity currency.

Meanwhile, EUR/CAD slumped to 1.3405, its lowest rate since November 2007; the pair later consolidated around 1.3418, shedding 0.71%. EUR/CAD was likely to find support at 1.3286, the low of Nov. 7, 2007, and resistance at 1.3822, the high of March 29.

The Financial Times reported earlier in the day that Greece would launch a multibillion dollar bond in the United States bond as it seeks new investors, selling itself for the first time as an emerging market country as demand for its debt dwindles in Europe.

Also Tuesday, Reuters quoted a senior official at Greece's Finance Ministry as saying that his country was not seeking to renegotiate an EU-IMF safety net agreement, following media reports that the debt-laden nation had wanted to amend the deal.

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