Forexpros — The Australian dollar was lower against its U.S. counterpart on Tuesday, pulling back from a 12-day high after rallying on Monday boosted by hopes of a fresh deal to stem the debt crisis in the euro zone.
AUD/USD hit 0.9925 during late Asian trade, the daily low; the pair subsequently consolidated at 0.9939, shedding 0.48%.
The pair was likely to find support at 0.9975, the low of September 27 and resistance at 1.0078, the high of September 22.
Investors remained cautious ahead of a vote by Slovakia on expanding the powers of the euro zone’s EUR440 billion bailout fund, the European Financial Stability Facility.
Meanwhile, officials from the European Union, the International Monetary Fund and the European Central Bank were due to complete their economic review on Greece, later in the day.
Risk appetite was boosted on Monday, after France and Germany pledged action on the euro zone debt crisis before the end of the month, including a plan to recapitalize European banks.
Also Tuesday, the National Australia Bank said that its business confidence index rose to a reading of minus 2 in September, from a downwardly revised minus 9 the previous month.
A reading above zero indicates improving conditions, below zero indicates worsening conditions.
The Aussie was down against the euro with EUR/AUD rising 0.42%, to hit 1.3718.
Later in the day, European Central Bank President Jean-Claude Trichet was to speak in Brussels.
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