Risk appetites waned overnight despite the Greek debt deal finally getting over the line.
It seemed to be another case of ‘buy the rumour, sell the fact’, with traders booking profits after the recent run up in risk assets.
The Aussie dollar was not spared, slipping against both the greenback and the yen.
The AUDUSD shed 0.8% to settle at 1.0667 at this morning’s NY close, whilst the AUDJPY gave up 0.7% to settle at 85.03.
During today’s Asian session Aussie and Kiwi dollars have lost ground against most of their major peers amid falling Asian stocks, damping demand for higher-yielding assets.
The local unit has slipped for a second consecutive session against its US and Japanese counterparts as traders bet the Reserve Bank of Australia will cut its key rate after minutes of its February meeting showed policy makers saw scope for further reductions.
New Zealand’s currency weakened after European shares fell amid concern Greece’s second bailout deal won’t be enough to resolve the region’s debt crisis.
Last night’s action saw the euro post gains across the board, boosted by the Greek debt deal.
The EURUSD added 0.1% to settle at 1.3242, the EURJPY firmed 0.2% to 105.56 and EURGBP added 0.5% to 0.8391.
Click Now for FREE Forex Recommendations