Investing.com - The Australian dollar dropped against its U.S. counterpart on Monday, falling to a six-week low as investors remained concerned over the handling of the debt crisis in the euro zone.
AUD/USD hit 0.9938 during late Asian trade, the pair’s lowest since October 12; the pair subsequently consolidated at 0.9936, declining 0.66%.
The pair was likely to find support at 0.9863, the low of October 12 and resistance at 1.0116, the high of November 17.
On Sunday, Spain’s center-right opposition People's Party won a crushing election victory and was expected to push through drastic austerity measures to try shore up the country’s economy.
But investors were still wary of how policymakers will be able to bring down the borrowing costs of many euro-zone governments from current elevated levels.
Meanwhile, a U.S. congressional "super committee" was expected to formally announce on Monday the failure of its three-month-long effort to forge a USD1.2 trillion deficit reduction plan.
Earlier Monday, government data showed that Japan's exports fell in October at the fastest pace in five months, underscoring mounting concerns that sputtering global growth and a strong yen will take their toll on the country’s economy.
Japan is Australia’s biggest export partner.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.35%, to hit 1.3561.
Later in the day, the U.S. was to release industry data on existing home sales.
AUD/USD hit 0.9938 during late Asian trade, the pair’s lowest since October 12; the pair subsequently consolidated at 0.9936, declining 0.66%.
The pair was likely to find support at 0.9863, the low of October 12 and resistance at 1.0116, the high of November 17.
On Sunday, Spain’s center-right opposition People's Party won a crushing election victory and was expected to push through drastic austerity measures to try shore up the country’s economy.
But investors were still wary of how policymakers will be able to bring down the borrowing costs of many euro-zone governments from current elevated levels.
Meanwhile, a U.S. congressional "super committee" was expected to formally announce on Monday the failure of its three-month-long effort to forge a USD1.2 trillion deficit reduction plan.
Earlier Monday, government data showed that Japan's exports fell in October at the fastest pace in five months, underscoring mounting concerns that sputtering global growth and a strong yen will take their toll on the country’s economy.
Japan is Australia’s biggest export partner.
Elsewhere, the Aussie was down against the euro with EUR/AUD rising 0.35%, to hit 1.3561.
Later in the day, the U.S. was to release industry data on existing home sales.