“Australia’s dollar declined, trimming a gain from yesterday, as concern Europe’s debt crisis is weighing on global growth reduced demand for riskier assets.
The so-called Aussie fell against most of its major peers after data showed business confidence weakened in Australia and before a report on German economic sentiment. Demand for the New Zealand dollar was limited as Asian stocks dropped.
“Europe looks like it’s heading towards recession, if not already in recession, which is having a drag on the global economy,” said Derek Mumford, a Sydney-based director at Rochford Capital, a currency risk-management company. “Commodity prices are well off their highs from earlier on in the year and last year. The Aussie is vulnerable to the downside.”
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