Australian Dollar Falls on European Debt Concerns

The Australian dollar extended its losses on concerns that the European debt crisis could worsen even after a deal to support Greece is finalized. The Australian dollar declined to 99.66 cents at 2:47 p.m. in Sydney, from 99.88 cents in New York yesterday.

“Risk-correlated currencies could trade sideways over the next month as we wait for more positive developments out of Europe,” said Roland Randall, a Singapore-based strategist for rates and foreign exchange at TD Securities Inc., who expects the Australian dollar could fall as low as 92 U.S. cents. “A bigger budget deficit does weaken the outlook for New Zealand at a margin and therefore make it more vulnerable to rising risk aversion.”

Bloomberg

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