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Forex - AUD/USD nears 3-week low as commodities weaken

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Forex Pros - The Australian dollar was trading close to a three-week low against its U.S. counterpart on Monday, as commodity prices weakened, dampening demand for the commodity linked currency.

AUD/USD hit 1.0527 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0551, slipping 0.22%.

The pair was likely to find support at 1.0442, the low of April 19 and resistance at 1.0716, last Friday's high.

The Australian dollar also came under pressure after a government report showed that home-loan approvals unexpectedly dropped to a 10-year low in March as higher interest rates deterred homebuyers.

The Bureau of Statistics said the number of loans granted to owner-occupiers to build or buy houses and flats in Australia dropped 1.5% to 44,968 in March. Analysts had expected home-loan approvals to rise by 2.3%.

Meanwhile, the Aussie was higher against the yen, with AUD/JPY rising 0.23% to hit 85.60.

Later in the day, the U.S. was to publish official data on manufacturing activity in New York state, while Federal Reserve Chairman Ben Bernanke was to speak.

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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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