The Australian dollar (AUD) has come under selling pressure headed towards the 1.0400. The push was a result of data indicating that Australian business confidence in October registered readings slightly lower compared to September’s. The failure of Eurozone finance ministers and the International Monetary Fund to agree on a long-term plan to cut Greece’s debt also resulted in a retreat for the AUD against the USD.
The pair hit a daily low of 1.0395 during European morning trade and subsequently consolidated at 1.0400 falling by 0.26 percent. According to Forexpros the pair is likely to find support at 1.0359, the low of November 9 and resistance at 1.0448, the high of November 6. A break of the 1.0359 border will mean a more bearish outlook of 1.0329 and 1.0305 lows. A counter analysis sees a good bullish structure and implies a break above yesterday’s 1.0440 high and extension even to above the 1.0480 high.
The National Australia Bank issued a report showing that its index of business confidence deteriorated to -1 in October, from a reading of zero in September. At the same time the Eurozone finance ministers gave Greece two years to cut the deficit to 2 percent of GDP. They also postponed the decision on how to cover Greece’s additional bailout needs of as much as €32.6 billion to 20 November. It is yet unclear whether the IMF will continue to contribute to the bailout packages.
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