Forexpros – The Aussie dollar slumped against its U.S. counterpart on Wednesday as weak Australian housing data sent investors snapping up positions in the greenback on fears the economy may be cooling.
AUD/USD hit 1.0613 in Asian trading on Wednesday, down 0.10% and up from a session low of 1.0594 and off from a high of 1.0639.
The pair sought to test support levels at 1.0528, Monday’s low, and resistance at 1.0685, Tuesday’s high.
The Australian Bureau of Statistics reported that its House Price Index, which measures home values in the country’s eight state capitals, fell by 1.00% in the fourth quarter of 2011, well below market expectations for a -0.60% figure.
Furthermore, weak housing and consumer confidence indicators out of the U.S. stoked global concerns that the U.S. isn’t quite as immune to global economic downturns as once thought, which prompted investors to sell U.S stocks and currencies worldwide and run to the greenback for safety.
The Aussie dollar, meanwhile, was down against the yen but up against its New Zealand counterpart, with AUD/JPY dipping 0.15% to 80.89 and AUD/NZD up 0.25% at 1.2884.
The Reserve Bank of Australia is to release data on commodity prices later Wednesday, a key indicator of the country’s trade balance.
Eurozone inflation figures are due out later Wednesday as well, while in the U.S. ADP employment numbers will serve as a precursor to Friday’s official jobs report, one of the most-watched indicators in the U.S. these days.
The ISM manufacturing index and crude oil stockpiles will also hit the wire in the U.S. Wednesday.
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