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Forex - AUD/USD lower as market sentiment wanes

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Investing.com - The Australian dollar was lower against its U.S. counterpart on Monday, as fresh concerns over the debt crisis in the euro zone weighed on market sentiment after news of a bailout deal for Cyprus.

AUD/USD hit 1.0344 during late Asian trade, the pair's lowest since March 14; the pair subsequently consolidated at 1.03630, shedding 0.49%.

The pair was likely to find support at 1.0297, the low of March 14 and resistance at 1.0414, the high of March 15.

On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return for the bailout international creditors demanded that all bank customers must pay a one-time tax on deposits.

The agreement marked the first time since the onset of the debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend.

The parliament in Cyprus was to vote on whether to approve the tax proposal later in the day. If the vote was defeated media outlets in Cyprus said banks could remain closed on Tuesday, following a public holiday on Monday, to avoid mass withdrawals.

In Australia, official data showed that new motor vehicle sales were flat in February, after a 2.2% rise the previous month.

The Aussie was sharply higher against the euro with EUR/AUD dropping 0.69%, to hit 1.2471.

The euro zone was to official data on the trade balance later in the trading day.

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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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