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Forex - AUD/USD drops to 2-week lows on RBA comments

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Investing.com - " The Australian dollar dropped to two-week lows against its U.S. counterpart on Tuesday, following comments by Reserve Bank of Australia Chairman Glenn Stevens, while markets were jittery ahead of the Federal Reserve's upcoming policy statement this week.

AUD/USD hit 0.9504 during late Asian trade, the pair's lowest since October 15; the pair subsequently consolidated at 0.9509, retreating 0.67%.

The pair was likely to find support at 0.9435, the low of October 14 and resistance at 0.9623, Monday's high.

The Aussie came under pressure after RBA Governor Stevens said the currency's level isn't supported by costs and productivity in the economy and the nation's terms of trade are more likely to fall than rise.

In the U.S., the Fed was not expected to announce any change to the rate of its USD85 billion-a-month asset purchase program after its meeting on Wednesday. The U.S. central bank was instead expected to delay plans to start tapering stimulus until well into next year.

Data released on Monday showed that U.S. industrial production rose 0.6% in September, coming in above expectations for a 0.4% rise.

However, a separate report showed that U.S. pending home sales fell 5.6% in September, down for the fourth consecutive month.

The Aussie was lower against the euro with EUR/AUD gaining 0.63%, to hit 1.4490.

Later in the day, the U.S. was to produce data on retail sales and producer price inflation, as well as a report on consumer confidence.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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