Aussie Weaken by Doubts About EU Loan Package

The Australian dollar fell against its U.S. counterpart, erasing its yesterday’s gains, and versus other most-traded currencies on the concerns that the loan package won’t resolve the fiscal crisis in the European Union.
The pessimistic outlook for the European economy makes investors to look for safety and drives away from the riskier currencies, such as the Australian dollar. The growth of the industrial output in China was lesser than expected, also weakening Aussie, because China is the biggest trading partner of Australia.
Despite the current difficulties for the Australian currency, some positive data appeared too. The nation’s budget is forecasted to return to surplus in 2012–13, earlier than in the previous estimates. Will the favorable economic data be followed by the currency’s appreciation we shall see.
AUD/USD traded at 0.8950 as of 21:07 GMT today down from the opening price of 0.9026. AUD/JPY fell to 82.96 from the opening level of 84.20.

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