Investing.com - The Aussie dollar traded modestly lower against
its U.S. rival during Wednesday's Asian session after Australian
Prime Minister Julia Gillard said the strong Aussie is beyond the
control of the government.
In Asian trading Wednesday, AUD/USD fell 0.02% to 1.0473. The pair
was likely to find support at 1.0404, the low of January 25 and
resistance at 1.0488, the high of January 4.
On Tuesday, the Aussie gained against the greenback after the
National Bank of Australia said that its index of business
confidence improved to 3 in December from a reading of minus 9 the
In a separate report, the Conference Board said that its leading
index for Australia lost 0.2% in November, after a 0.2% rise the
Gillard is scheduled to give a speech today in which she is widely
expected to pressure the Reserve Bank of Australia to lower
interest rates again. RBA, Australia's central bank, is scheduled
to next meet on February 5. Most traders do not expect a rate
following that meeting, but further rate cuts this year seem to be
a forgone conclusion.
RBA has slashed Australia's benchmark interest rate by 175 basis
points to 3% since November 2011. Despite those cuts, AUD/USD has
continued to rise in part because even at 3%, Australia is seen as
having high interest relative to other developed world economies.
Elsewhere, Gillard has set September 14 as the date of Australia's
next election, hoping that gives her minority Labor party enough
time to close a noticeable gap in public opinion polls. Australia's
parliament will break on August for the month leading up to
Meanwhile, EUR/AUD fell 0.03% to 1.2880 while AUD/NZD climbed 0.31%
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