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Forex - AUD/USD falls to 4-day low on E.Z. concerns

Published 11/16/2011, 03:03 AM
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Investing.com – The Australian dollar tumbled to a four-day low against its U.S. counterpart on Wednesday, as investors remained concerned over potential debt contagion to core economies in the euro zone.

AUD/USD hit 1.0061 during late Asian trade, the pair's lowest since November 10; the pair subsequently consolidated at 1.0090, dropping 0.85%.

The pair was likely to find support at 0.9905, the low of October 11 and resistance at 1.0231, the high of October 13.

Concerns over the deepening debt crisis grew after French 10-year bond yields rose to euro-era highs on Tuesday while Italian 10-year bond yields rose to near unsustainable levels, climbing above 7%.

Italian Prime Minister-designate Mario Monti was to meet with President Giorgio Napolitano to officially accept the post and possibly present his ministers.

Markets were eyeing Spanish and French bond auctions to take place later Wednesday and on Thursday.

Earlier in the day, official data showed that Australia's wage price index rose less-than-expected in the third quarter, advancing 0.7% after a 0.9% rise the previous quarter. Analysts had expected the index to remain unchanged in the third quarter.

The data came after a report showing that the Melbourne Institute leading index rose to 3.3% in September, underlining a positive perspective for domestic economic growth.

Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.22%, to hit 1.3334.

Later in the day, the U.S. was to release official data on consumer price inflation and industrial production.

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