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Forex - AUD/USD slips lower in cautious trade

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Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Wednesday, as concerns over the financial stability of the euro zone and ongoing political uncertainty in Italy weighed on market sentiment.

AUD/USD hit 1.0461 during late Asian trade, the session low; the pair subsequently consolidated at 1.0470, edging down 0.14%.

The pair was likely to find support at 1.0433, the low of March 25 and resistance at 1.0497, Tuesday's high.

Markets were jittery amid fears the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states with troubled financial sectors, with bank depositors and bond holders forced to foot the bill.

Elsewhere, talks in Italy aimed at forming a coalition government continued after general elections in late February resulted in a political stalemate, amid growing concerns that the country may have to return to the polls.

Meanwhile, in its biannual financial stability review, the Reserve Bank of Australia said that Australian households are building mortgage "buffers" to help them withstand temporary unemployment or lower income, adding that current tensions in Cyprus underline global vulnerabilities.

The Aussie was steady against the New Zealand dollar with AUD/NZD dipping 0.04%, to hit 1.2486.

Later in the day, the U.S. was to produce industry data in pending home sales and a government report on crude oil stockpiles.

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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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