Forexpros – The Australian dollar trimmed losses against its U.S. counterpart on Monday, pulling back from a two-day low, but concerns over the debt crisis in the euro zone continued to weigh.
AUD/USD pulled away from 1.0212, the pair’s lowest since last Thursday, to hit 1.0260 during early European trade, still down 0.98% on the day.
The pair was likely to find support at 1.0181, Thursday’s low and resistance at 1.0345, the high of the same day.
Concerns over the debt crisis in the euro zone remained in focus after a meeting of European Union finance ministers over the weekend failed to make headway on dealing with the issue.
Ministers warned they may withhold Greece’s next tranche of bailout aid if Athens fails to meet deficit reduction targets. After the meeting, Greek Prime Minister George Papandreou canceled a planned visit to the U.S. in order to hold crisis talks at home.
The Australian dollar was weighed by speculation over a possible rate cut by the Reserve Bank of Australia, ahead of the release of minutes from this month’s policy-setting meeting on Tuesday.
The Aussie was also lower against its New Zealand cousin, with AUD/NZD shedding 0.34% to hit 1.2452.
Also Monday, a report showed that the New Zealand’s Westpac index of consumer sentiment was unchanged at 112 in the September quarter, as consumers remained upbeat, but long term confidence dropped off.
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