Australian Dollar Slides on Eurozone and Asian Stocks

Asian stocks ended Monday’s session lower, and eurozone fears continue to provide reason for concern. As a result, the Australian dollar is sliding, even hitting new 2011 lows during trading.

Indeed, this is a new development for the Aussie, which has seemed almost impervious to trouble throughout much of the year. The Australian dollar avoided big losses during the Middle East riots, the US debt downgrade and previous Greek worries. Now, though, the story appears to be changing. Greece has announced that it will miss its deficit target, and eurozone concerns continue to mount. On top of that, some recent events suggest that China’s sovereign debt situation might not be that great, and that the economic powerhouse, whose growth has been slowing, might even have a crisis of its own. Even improved ISM data and rising gold prices haven’t been able to help the Australian dollar much.
At 16:24 GMT, AUD/USD is at 0.9630, down from 0.9658 at the open. USD is also higher against other currencies, with EUR/USD down to 1.3268 from the open at 1.3342 and GBP/USD down to 1.5461 from the open at 1.5551.

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