Forexpros – The Australian dollar was up against its U.S. counterpart on Thursday, but gains were limited amid sustained concerns over debt contagion to the euro zone’s core economies after a poor German bond sale.
AUD/USD hit 0.9748 during late Asian trade, the daily high; the pair subsequently consolidated at 0.9739, rising 0.48%.
The pair was likely to find support at 0.9621, the high of October 6 and resistance at 0.9855, the high of November 23.
Market sentiment was hit on Wednesday after the least successful German bond sale since the launch of the single currency.
Germany failed to reach its maximum sales target of EUR6 billion, auctioning just EUR3.64 billion of 10-year government bonds, sparking concerns that the country may also be affected by the euro zone’s debt crisis.
Meanwhile, ratings agency Fitch warned that France could lose its triple-A credit rating if European Union leaders fail to take action to prevent the crisis from worsening.
Investors were also jittery ahead of a meeting between German, French and Italian leaders on Thursday to discuss ways to deal with the region’s worsening financial troubles.
Elsewhere, the Aussie was up against the New Zealand dollar with AUD/NZD edging up 0.09%, to trade at 1.3103.
Later in the day, Reserve Bank of Australia Chairman Glenn Stevens was due to speak at the ABE Annual Forecasting Conference.
In the U.S., markets were closed for the Thanksgiving holiday.
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