Aussie hits high vs. euro, falls vs. U.S. dollar
NEW YORK (MarketWatch) -- The Australian dollar gave up gains against the U.S. currency, while the euro fell to a record low versus the aussie on Tuesday, caught between more reason for worries about Europe's bailout and China's disappointing trade data.
Australia's currency (AUDUSD) turned down to $1.0186, from $1.0194 in late North American trading on Monday.
The euro (EURAUD) fell 0.4% to buy 1.2027 Australian dollars, its lowest level since the euro's inception in 1999.
"Overall, the euro is falling against anything," said John Doyle, director of markets at Tempus Consulting. "The euro is going to be under pressure versus everything, so breaking new lows like it has been wouldn't be surprising.
But for the day, traders widely looked less inclined to shift into riskier assets, which tends to include the Australia dollar and its higher-yielding securities. Read about euro's decline.
Data out of China showed that domestic demand declined, said Christopher Vecchio, a currency analyst at DailyFX. That's important to Australia because China buys a lot of Australia's exports. But it's also boosted the U.S. dollar which tends to benefit when traders shift from risk to safety, which tends to happen when signs point to slowing global growth. See more on Chinese data, markets.
Vecchio expects the aussie to fall back under $1 by next week. The aussie has traded above parity most of the time since late 2010, but has spent most of the last decade below that threshold.