Wednesday saw the monetary unit of Australia fall in value to the U.S. dollar for a second consecutive day as worries widened about tumult with meetings to address the sovereign debt crisis in Brussels, according to published reports.
Slowed growth during the third quarter influenced speculation about the Reserve Bank of Australia slashing interest rates, Bloomberg reports. Australia's consumer price index during the third quarter was 0.6 percent, a reduction from second quarter figure of 0.9 percent, states data from the Statistics Bureau in Sydney.
Richard Grace, the chief currency strategist with Commonwealth Bank of Australia, predicted additional slips are likely after Wednesday's poor performance by the Aussie, another word for the nation's monetary unit.
"There is more downside left in [Australia's dollar] just on the big fall in Australian bond yields," Grace told Dow Jones Newswires. "As those yields adjust, that will put more pressure on [the Australian dollar]. But the bigger news is what happens out of Europe, and we're very bearish there."
Meetings in Brussels are scheduled to ensue but not ones for nations' finance ministers, who cancelled their meetings. That cancellation prompted concerns about what leaders will be able to achieve with the European Financial Stability Facility, which aims to aid countries enduring damage inflicted by the sovereign debt crisis.
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