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Forex - AUD/USD falls to 4-month low on euro zone uncertainty

Published 05/07/2012, 02:53 AM
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Investing.com - The Australian dollar fell to a four-month low against its U.S. counterpart on Monday, as weekend elections in Greece and France sparked fresh concerns over the handling of the euro zone’s debt crisis.

AUD/USD hit 1.0111 during late Asian trade, the pair’s lowest since December 29; the pair subsequently consolidated at 1.0155, shedding 0.25%.

The pair was likely to find support at 1.0070, the low of December 28 and short term resistance at 1.0172, the high of December 26.

In Greece, neither of the two pro-bailout parties secured enough votes to form a majority in parliament, as voters favored smaller parties who campaigned against the harsh government austerity program, throwing the future of the country’s international bailout agreement into doubt.

Meanwhile, in France President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has been critical of the country's austerity program.

The Australian dollar found support after official data showed that domestic retail sales rose more-than-expected in March, adding 0.9% after a 0.3% rise the previous month. Analysts had expected retail sales to rise 0.3% in March.

The data came after a separate report showed that building approvals in Australia jumped 7.4% in March, above expectations for a 3.2% rise and following an 8.8% decline the previous month.

Elsewhere, the Aussie was higher against the euro with EUR/AUD declining 0.31%, to hit 1.2812.

Data also showed earlier Monday that Australia’s index of business confidence rose from 3 to 4 last month, while job advertisements fell 3.1% after a 0.7% rise in March.


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