U.S. political leaders struggling with fiscal cliff negotiations prompted the Australian dollar to sustain losses for the third straight day on Thursday, Bloomberg reports.
Wayne Swan, treasurer of Australia, forecast no budget surplus is likely for 2012-2013, which drew down demand for the Aussie. The monetary unit of New Zealand dropped to its lowest level in one week as a consequence of economic data demonstrating gross domestic product grew less than forecast during the third quarter of this year.
"The GDP figures came in a shade below expectations," currency strategist Mike Jones with the Bank of New Zealand in Wellington told Bloomberg on Thursday. "The market is well aware that the third quarter was a bit of a speed wobble in the New Zealand economic recovery, and the more timely forward-looking indicators are quite solid."
From Monday through Wednesday, the Aussie fell 0.8 percent against the U.S. dollar. The Aussie also slumped against the Japanese yen.
Concerns are growing that political leaders will not be able to resolve the fiscal cliff debate prior to the end of the year, according to The Business Spectator.
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