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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 Thursday, as market sentiment remained under pressure amid concerns over a potential fallout from a last minute bailout for Cyprus and growing concerns over political deadlock in Italy.

AUD/USD hit 1.0416 during late Asian trade, the pair's lowest since March 21; the pair subsequently consolidated at 1.0429, slipping 0.13%.

The pair was likely to find support at 1.0364, the low of March 21 and resistance at 1.0482, Wednesday's high.

Investors were cautious as Italian centre-left leader Pier Luigi Bersani seemed to have only slim hope of forming a government after talks with rival party leaders ended on Wednesday with rejection from Beppe Grillo's 5-Star Movement.

Markets were also jittery as Cyprus prepared to reopen its banks for the first time in nearly two weeks, with fears of bank runs prompting the government to impose a number of controls, including limiting withdrawals and banning cheques.

The Aussie was also lower against the New Zealand dollar with AUD/NZD edging down 0.20%, to hit 1.2451.

Also Thursday, official data showed that building consents in New Zealand rose 1.9% in February, after a 0.2% decline the previous month.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims as well as revised data on fourth quarter economic growth.

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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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