Monday saw the monetary unit of Australia slip below parity against the world's reserve currency as concerns strengthened for Greece leaving the euro zone, Bloomberg reports.
The Aussie's value also dropped to record lows as bond yields fell and Greek president Karolos Papoulias continues working with national party political leaders as they drive toward creating a national unity government. China reduced cash requirements of its banks, prompting Australian and New Zealand optimism to climb regarding exports.
"We anticipate a mild acceleration in China's gross domestic product growth over the next 12 months," chief FX strategist Richard Grace with CBA told Dow Jones Newsires. "In such an economic environment, it is difficult to get too bearish on the Australia dollar."
The Australian dollar fell to its lowest value against the U.S. dollar since the middle of this past December as the Aussie also dropped against the Japanese yen.
Australian currency analysts are downgrading exchange rate outlooks for the Aussie because of the sovereign debt crisis and the economic slowdown in China, Dow Jones Newswires reports.
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