Aussie Dollar Falls Amid European Stalemate, Before RBA

Australia's dollar declined on speculation disagreement among the euro region's leaders on debt-crisis solutions is curbing prospects for growth, damping demand for higher-yielding assets.

The Australian and New Zealand currencies slid before data today forecast to show German business confidence stayed near the lowest in more than two years. Greece and representatives of its international lenders agreed to take a break from inconclusive aid talks. The so-called Aussie declined against all of its major peers before the Reserve Bank of Australia holds a policy meeting next week.

“Aussie is seeing a bit of slippage on the possibility of the RBA cutting rates as early as October,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp. (WBC), Australia's second-largest lender. “Markets could remain confined for a while. What could move markets would be some friction news on the Greek-troika inspections,” he said, referring to the group made up of the International Monetary Fund, the European Central Bank and the European Commission.

via Bloomberg