Investing.com - The Australian dollar moved lower against the U.S. dollar Tuesday, following an announced agreement by European leaders on measures to recapitalize the region’s faltering banks.
AUD/USD hit 0.9966 in early Asian trade, the day’s low; the pair subsequently consolidated at 0.9968, declining 0.22%.
The pair was likely to find support at 0.9488, last Wednesday’s low, and resistance at 1.0292, the high of September 21.
Over the weekend, German Chancellor Angela Merkel and French President Nicolas Sarkozy, said that they had agreed to strengthen European banks and that specifics of a package of measures would be revealed by the end of the month.
Meanwhile, the troika of international lenders, the European Union, the International Monetary Fund and the European Central Bank were set to conclude review meetings with Greek officials in Athens.
A favorable report could clear the way for the release of a USD10.8 billion rescue package for Greece it needs by the middle of next month in order to to avoid debt default.
Wall Street shares reacted positively to the news from Europe, with the Dow Jones Industrial Average gaining 2.97%, the Nasdaq Composite Index jumped 3.5%, and the S&P 500 was up sharply by 3.41%.
In Sydney, Australian shares moved higher in early Tuesday trade, with the benchmark S&P/ASX 200 gaining 0.76% 4,234.50.
Meanwhile, the Australian dollar was lower against both the euro and the Japanese yen, with EUR/AUD rising 0.07% to hit 1.3666, and AUD/JPY down 0.18% to hit 76.42.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Australia’s Westpac Consumer Sentiment report from the Faculty of Economics and Commerce Melbourne Institute was due out later Tuesday.