Forex - AUD/USD slides as euro zone debt worries weigh
Investing.com
Published Sep 13, 2011 03:07AM ET
AUD/USD hit 1.0304 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0325, slipping 0.20%.
The pair was likely to find support at 1.0255, Monday’s low and a one-month low and resistance at 1.0440, Monday’s high.
The Aussie rose to the session high earlier, after a report in the Financial Times said China would support Italy by buying “significant” amounts of Italian government bonds. Italian borrowing costs have risen significantly in recent weeks, amid uncertainty over the implementation of austerity measures.
But investors remained wary amid growing fears over a potential Greek default and continued worries about the European banking system.
Also Tuesday, a report showed that Australian business confidence fell to the lowest level since April 2009 last month, as increased global uncertainty and concerns over the euro zone debt crisis weighed on sentiment.
National Australia Bank said its index of business confidence fell to minus 8 in August from 2 in July.
The Aussie was lower against the yen, with AUD/JPY slipping 0.28% to hit 79.66.
Later in the day, Italy’s Treasury was to auction EUR7 billion of bonds maturing between 2016 and 2021. Meanwhile, the U.S. was to release official data on import prices, as well as a report on the federal budget balance.
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Written By: Investing.com
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