Investing.com – The Australian dollar trimmed losses against its U.S. counterpart on Tuesday, pulling back from a five-week low but the pair remained vulnerable amid ongoing concerns over the financial crisis in the euro zone.
AUD/USD pulled away from 1.0146, the pair’s lowest since August 11, to hit 1.0207 during late Asian trade, still down 0.11%.
The pair was likely to find support at 1.0109, the low of August 11 and resistance at 1.0314, Monday’s high.
The Australian dollar found support after the minutes of the Reserve Bank of Australia’s September policy meeting showed that policymakers believed it was better to keep rates steady in the light of uncertainty over the global outlook, easing concerns over possible rate cuts by the central bank.
The RBA left its benchmark interest rate unchanged at 4.75% after its September 6 meeting.
“Members considered that the current setting of monetary policy left the board well placed to respond to evolving global and domestic economic conditions,” the minutes said.
But concerns over the debt crisis in the euro zone mounted after Standard & Poor’s downgraded Italy’s sovereign debt rating, while uncertainty over whether Greece will receive its next trance of aid also weighed.
The Aussie was also lower against the yen, with AUD/JPY shedding 0.21% to hit 78.10.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
AUD/USD pulled away from 1.0146, the pair’s lowest since August 11, to hit 1.0207 during late Asian trade, still down 0.11%.
The pair was likely to find support at 1.0109, the low of August 11 and resistance at 1.0314, Monday’s high.
The Australian dollar found support after the minutes of the Reserve Bank of Australia’s September policy meeting showed that policymakers believed it was better to keep rates steady in the light of uncertainty over the global outlook, easing concerns over possible rate cuts by the central bank.
The RBA left its benchmark interest rate unchanged at 4.75% after its September 6 meeting.
“Members considered that the current setting of monetary policy left the board well placed to respond to evolving global and domestic economic conditions,” the minutes said.
But concerns over the debt crisis in the euro zone mounted after Standard & Poor’s downgraded Italy’s sovereign debt rating, while uncertainty over whether Greece will receive its next trance of aid also weighed.
The Aussie was also lower against the yen, with AUD/JPY shedding 0.21% to hit 78.10.
Later in the day, the U.S. was to publish government data on building permits and housing starts.