Investing.com - The Australian dollar dropped to fresh 11-month lows against its U.S. counterpart on Thursday, as concerns over the outlook for growth in the euro zone and the U.S. weighed on demand for risk-related assets.
AUD/USD hit 0.9828 during late Asian trade, the pair's lowest since June 8, 2012; the pair subsequently consolidated at 0.9834, retreating 0.64%.
The pair was likely to find support at 0.9711, the low of June 5, 2012 and resistance at 0.9914, the session high.
Investors remained cautious after official data on Wednesday showed that the euro zone economy contracted by 0.2% in the first quarter, bringing the annualized rate of contraction to 0.9%.
Germany's economy posted growth of 0.1%, below expectations for a 0.3% increase, while the French economy contracted by a larger than expected 0.2%.
In the U.S., data on Wednesday showed that industrial production fell by 0.5% in April, more than forecasts for a 0.2% drop. The data undermined expectations that the Federal Reserve could begin to scale back its asset purchase program later this year.
The Aussie was also lower against the New Zealand dollar with AUD/NZD shedding 0.25%, to hit 1.1978.
Also Thursday, data showed that the New Zealand business manufacuring index rose to 54.5 in April from a reading of 53.4 the previous month.
Separately, in its annual budget release, the New Zealand government projected a small budget surplus of NZD75 million in 2015, up from a previously forecast NZD66 million, as rebuilding earthquake-devastated Christchurch city bolsters economic growth and tax revenue.
Later in the day, the U.S. was to produce official data on building permits, housing starts, consumer inflation and initial jobless claims, as well as the Philly Fed manufacturing index.
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