Tuesday saw the Australian dollar lose value against the U.S. dollar as the monetary unit was pulled down by preoccupations about the sovereign debt crisis crimping worldwide growth and development, Bloomberg reports.
The Aussie also slipped against most of its rival monetary units after economic data indicated business confidence was slipping after a business index revealed the downturn. Demand for the New Zealand dollar dropped as Asian stocks performed poorly.
"Today's report suggests that businesses entered the December quarter on a very weak footing – in fact, the weakest in about three years," strategist Alvin Pontoh with TD Securities told The Wall Street Journal. "The combination of soft activity and subdued price pressures suggest more room for the RBA (Reserve Bank of Australia) to move on rates."
The National Australia Bank indicated a business confidence index dropped from zero to minus from September to October. The data was drawn from 400 companies who were polled during the second half of October.
The business index fell to its lowest rate in more than three years, according to The Wall Street Journal.
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