“The Australian dollar retreated from near a two-week high as concern U.S. lawmakers will struggle to agree on raising the nation’s debt ceiling overshadowed the bill they passed to avert the so-called fiscal cliff.
The Aussie slid versus most of its 16 major counterparts as officials in the world’s biggest economy turned their attention to a debate over raising the $16.4 trillion debt limit. An increase will be needed as early as mid-February, according to the U.S. Congressional Budget Office. The New Zealand dollar, also known as the kiwi, reversed a gain from yesterday as U.S. stock futures fell.
“All along, it’s been clear that the fiscal deal was not going to bring any real progress for long-term spending and tax reform,” said Todd Elmer, head of Group of 10 foreign-exchange strategy for Asia excluding Japan at Citigroup Inc. in Singapore. “There is some further upside for the Aussie and I doubt this temporary dip that we’re seeing is going to last.”
The Australian dollar lost 0.1 percent to $1.0491 as of 5:32 p.m. in Sydney from $1.0504 at the close yesterday, when the currency touched $1.0524, the strongest since Dec. 19…”
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