Australian Dollar Goes Further Down Against Greenback

The Australian dollar extended the decline against its U.S. counterpart for the fifth straight day and fell versus the euro for the second day as the financial turmoil in the European Union decreased the demand for the higher-yielding assets.

The Aussie’s appreciation was also contained by the prospect for the hung parliament after this year’s election and by the prediction that the interest rate won’t rise further. As the investors are attracted to the Australia by the high interest rate, without the rate’s growth the appeal of the currency may erode, while the speculators will turn to other currencies, like the New Zealand dollar. The stalemate on the election shouldn’t has that great impact on the economy like in the U.K., though, as Australia, unlike Britain, hasn’t huge budget deficit and other economical problems.

AUD/USD traded near 0.8303 as of 9:18 GMT today, tumbling from the opening price of 0.8470. EUR/AUD rose to about 1.4906 after opening at 1.4652.

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