The monetary unit of Australia fell in value against the U.S. dollar on Tuesday, but its losses were tempered by Greece securing its second tranche of bailout aid since June 2010, Bloomberg reports.
The Aussie lost value after minutes from the February 7 meeting of the nation's central bank demonstrated monetary easing is on the table. Meanwhile, the New Zealand dollar climbed in value upon Greece being approved for the bailout tranche.
"The detail of the package plus the increase in the haircut have all come at the time when the market has found itself short risk," currency sales executive director Kurt Magnus with Nomura Holdings in Sydney told Bloomberg. "I expect the Aussie and the kiwi to really go a lot higher."
Discussion during the February 7 meeting of the Reserve Bank of Australia circled around the fragility of Europe's economy as a consequence of the sovereign debt scourge.
Austerity measures that Greece agreed to implement are likely to fall under sharp scrutiny, according to Dow Jones Newswires. However, the Aegean nation has elections scheduled for April so the possibility of those deep cuts being reduced remains.
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