Investing.com - The Australian dollar fell against its U.S. counterpart on Wednesday, tumbling to a six-week low as market sentiment weakened amid concerns that France’s triple A credit rating may be in danger and after downbeat Chinese manufacturing data.
AUD/USD hit 0.9756 during late Asian trade, the pair’s lowest since October 10; the pair subsequently consolidated at 0.9754, dropping 0.81%.
The pair was likely to find support at 0.9621, the low of October 6 and resistance at 0.9898, the high of November 22.
Market sentiment was hit following reports saying that Belgium and France were in fresh talks over an existing rescue deal for Dexia, stirring worries about the potential for an increased fiscal burden on France, which could have implications for France's AAA credit rating.
Investors were also jittery after China's November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0, dropping below the 50-point level that denotes a contraction, as new orders slumped.
Also Wednesday, official data showed that construction work done in Australia rose far more-than-expected in the third quarter, jumping 12.5% after a 0.1% decline the previous quarter.
Analysts had expected construction work done to rise 2.1% in the third quarter.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.44%, to hit 1.3791.
Later in the day, the U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil stockpiles, inflation, personal income and personal spending.
Meanwhile, the University of Michigan was to release revised data on inflation expectations and consumer sentiment.
AUD/USD hit 0.9756 during late Asian trade, the pair’s lowest since October 10; the pair subsequently consolidated at 0.9754, dropping 0.81%.
The pair was likely to find support at 0.9621, the low of October 6 and resistance at 0.9898, the high of November 22.
Market sentiment was hit following reports saying that Belgium and France were in fresh talks over an existing rescue deal for Dexia, stirring worries about the potential for an increased fiscal burden on France, which could have implications for France's AAA credit rating.
Investors were also jittery after China's November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0, dropping below the 50-point level that denotes a contraction, as new orders slumped.
Also Wednesday, official data showed that construction work done in Australia rose far more-than-expected in the third quarter, jumping 12.5% after a 0.1% decline the previous quarter.
Analysts had expected construction work done to rise 2.1% in the third quarter.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.44%, to hit 1.3791.
Later in the day, the U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil stockpiles, inflation, personal income and personal spending.
Meanwhile, the University of Michigan was to release revised data on inflation expectations and consumer sentiment.