Oct
23
Forexpros – The Australian dollar edged lower against its U.S. counterpart on Tuesday, after disappointing economic data from Australia and as concerns over a global economic slowdown persisted.
AUD/USD hit 1.0309 during European morning trade, the daily low; the pair subsequently consolidated at 1.0294, slipping 0.27%.
The pair was likely to find support at 1.0277, the low of September 7 and resistance at 1.0354, the high of August 31.
The Conference Board said earlier that its leading index for Australia fell 0.8% in August, after a flat reading the previous month.
Sentiment had strengthened on Monday, after Spanish regional election results indicated support for the austerity policies of Prime Minister Mariano Rajoy.
The center-right Popular Party of Prime Minister Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting a bailout from Spain’s euro zone partners.
A bailout request by Spain would activate the European Central Bank’s bond purchasing scheme, aimed at lowering high peripheral bond yields in the euro zone.
Elsewhere, the Aussie was steady against the euro with EUR/AUD dipping 0.01%, to hit 1.2653.
Trading volumes were expected to remain light on Tuesday, as no major economic indicators were to be released from the euro zone or the U.S.
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