Shutterstock photo
Markets

Forex - AUD/USD edges lower amid global growth fears

Shutterstock photo

Shutterstock photo

Forexpros - The Australian dollar was down against its U.S. counterpart on Thursday, as mounting concerns over the global economic outlook weighed on demand for growth-linked currencies.

AUD/USD hit 1.0468 during late Asian trade, a daily low; the pair subsequently consolidated at 1.0482, slumping 0.65%.

The pair was likely to find support at 1.0350, the low of August 15 and short-term resistance at 1.0601, Wednesday's high and a two-week high.

Concerns over the economic outlook for the euro zone were underscored after European Central Bank Governing Council member Ewald Nowotny said that he was more concerned of entering a phase of slow growth and low inflation than the risks posed by high inflation.

Nowotny added that growth in the U.S. was likely to continue, albeit at a more modest pace than previously expected.

The Aussie was also weighed after oil and copper prices retreated on the New York Mercantile Exchange, dampening the outlook for the nation's commodity exports.

Elsewhere, the Aussie was also down against the yen, with AUD/JPY slumping 0.57% to hit 80.36.

Later in the day, the U.S. was to publish a flurry of economic data with government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos