Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Thursday, after data showed that inflation expectations for Australia declined last month and as declining oil prices continued to weigh on market sentiment.
AUD/USD hit 0.6886 during late Asian trade, the session low; the pair subsequently consolidated at 0.6895, slipping 0.16%.
The pair was likely to find support at 0.6825, Wednesday’s low and resistance at 0.6962, the high of January 19.
The Melbourne Institute said that its inflation expectations for the next 12 months ticked down to 3.6% in December from 4.0% the previous month.
Investors also remained cautious after oil prices dropped to the lowest level since 2003 on Wednesday, falling below $28 per barrel after the International Energy Agency said in a report that the supply glut in markets looks set to last until at least late 2016.
Meanwhile, the greenback’s gains were limited by a string of disappointing U.S. economic reports released on Wednesday.
The U.S. Commerce Department said that consumer prices fell 0.1% in December, compared to expectations for a flat reading.
Separately, the U.S. Commerce Department said that housing starts fell 2.5% to hit 1.149 million units last month from November’s total of 1.179 million units. Analysts had expected a rise 1.6% to 1.200 million.
Meanwhile, the number of building permits issued declined 3.9% to 1.232 million units from November’s total of 1.289 million. Economists had forecast a drop of 6.4% to 1.200 million units.
The Aussie was also lower against the euro, with EUR/AUD rising 0.35% to 1.5818.