During this morning’s session the Aussie made a modest recovery against most of its major peers after the Reserve Bank of Australia (RBA) said the local economy was well placed to respond to risks.
Risk aversion well and truly seized the markets yesterday, after news emerged that Greece may have to wait longer for its next round of bailout funds, if it indeed qualifies for them at all.
The Great British pound fell to an overnight low of 1.5640 against the US dollar (GBPUSD) amid the ongoing eurozone concerns.
The euro lost more than a cent against the greenback (EURUSD) overnight and continued to tumble during this morning’s Asian session after Standard & Poor’s cut Italy’s credit rating.
Elsewhere, the Japanese yen remained strong against major currencies as traders flocked back to the safe-haven currencies.