Investing.com - The Australian dollar dropped against its U.S. counterpart on Tuesday, after the release of tepid business confidence data from Australia and as global growth concerns persisted.
AUD/USD hit 0.7020 during late Asian trade, the pair’s lowest since February 3; the pair subsequently consolidated at 0.7032, declining 0.79%.
The pair was likely to find support at 0.6998, the low of February 3 and resistance at 0.7131, Monday’s high.
The National Australia Bank reported on Tuesday that its business confidence index ticked down to 2 in January from 3 the previous month, in line with expectations.
Meanwhile, investors remained cautious after oil prices fell back below $30 a barrel on Monday amid ongoing supply glut concerns.
Meanwhile, the greenback remained mildly supported after a pick-up in U.S. wage growth to a one year high bolstered the outlook for inflation and increased the likelihood that the Federal Reserve could make further rate hikes in 2016.
The Aussie was lower against the euro, with EUR/AUD jumping 0.94% to 1.5939.