The Australian dollar dropped against each of its 16 major counterpart currencies on Thursday as U.S. political leaders facing a daunting deadline prepared to convene again to discuss staving off next year's automatic implementation of more than $600 million in tax hikes and spending cuts, Bloomberg reports.
The Aussie was heading toward its top losses in four months while the moentary unit of New Zealand was wallowing in eight consecutive days of losses. But upticks to the economy of China, the globe’s second largest and a top trade partner to the South Pacific nations, are likely to cushion losses to the Aussie and Kiwi.
"The Chinese data have bottomed and started to show improvement," currency economist Peter Dragicevich Commonwealth Bank of Australia told Bloomberg on Thursday. "That should provide some support for the Aussie and Kiwi currencies, but a lot will depend on what the U.S. politicians do."
Thus far this month, the Aussie has slipped about 0.8 percent and the Kiwi’s losses during its eight-day swoon amount to more than 3 percent.
The closing value of the Aussie was at its lowest since November 21, according to AAP.
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