Investing.com - The Australian dollar dipped against its U.S. counterpart on Tuesday, as speculation that the Italian government is on the verge of collapsing ahead of a parliamentary vote weighed on risk appetite.
AUD/USD hit 1.0301 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0295, shedding 0.79%.
The pair was likely to find support at 1.0201, the low of November 3 and resistance at 1.0496, the high of October 25.
Market sentiment weakened ahead of a crucial vote in Italy on public finances amid growing pressure for Prime Minister Silvio Berlusconi to step down and allow a new government to steer the country out of the euro zone's debt crisis.
On Monday, Mr. Berlusconi denied reports that he was planning to resign and said he was convinced his government was going to survive.
Meanwhile, Greece was to announce the new head of an interim government amid ongoing efforts to avoid a potential default.
In Australia, official data showed that the country's trade surplus expanded less-than-expected in September, rising to AUD2.56 billion after a reading of AUD2.95 the previous month.
Analysts had expected a trade surplus of AUD3.02 billion in September.
Elsewhere, the Aussie also down against the euro with EUR/AUD rising 0.52%, to hit 1.3344.
Earlier Tuesday, a report showed that Australian business confidence ticked higher in October.
National Australia Bank said that its index on business confidence rose to 2 after a decline to minus 1 in September.
AUD/USD hit 1.0301 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0295, shedding 0.79%.
The pair was likely to find support at 1.0201, the low of November 3 and resistance at 1.0496, the high of October 25.
Market sentiment weakened ahead of a crucial vote in Italy on public finances amid growing pressure for Prime Minister Silvio Berlusconi to step down and allow a new government to steer the country out of the euro zone's debt crisis.
On Monday, Mr. Berlusconi denied reports that he was planning to resign and said he was convinced his government was going to survive.
Meanwhile, Greece was to announce the new head of an interim government amid ongoing efforts to avoid a potential default.
In Australia, official data showed that the country's trade surplus expanded less-than-expected in September, rising to AUD2.56 billion after a reading of AUD2.95 the previous month.
Analysts had expected a trade surplus of AUD3.02 billion in September.
Elsewhere, the Aussie also down against the euro with EUR/AUD rising 0.52%, to hit 1.3344.
Earlier Tuesday, a report showed that Australian business confidence ticked higher in October.
National Australia Bank said that its index on business confidence rose to 2 after a decline to minus 1 in September.