The Australian Dollar was sold off two US Cents towards 0.8200 overnight and has subsequently traded below 0.8200 following reports out of Europe regarding Europe's debt crisis, which may have spread to Hungary.
The global economy looks likely to avoid a relapse into recession, although the next six months may be anemic, with three main causes for concern.
Leading policymakers expressed concern on Friday about the health of the world economy even as they closed ranks behind the euro zone's efforts to tackle a debt crisis that has rattled global markets.
G20 finance ministers and central bankers will endorse efforts to douse the euro zone's debt crisis but are far apart on the contentious issue of a global bank levy, a senior South Korean official said on Friday.
The global recovery had enough momentum before Europe's debt crisis struck to be able to weather it without being derailed, Treasury Secretary Timothy Geithner said on Thursday.
Some of the world's richest central banks will not stop investing in the euro, supporting its reserve status, despite the sovereign debt crisis hammering the euro zone's currency, government sources said.
The euro rose on Wednesday after some of the world's biggest central banks said they would not stop investing in the single currency, while world equities and commodity prices fell.
Advanced economies face years of anemic growth and the risk of a double-dip recession as their citizens cope with sluggish employment and highly indebted governments, economist Nouriel Roubini said on Monday.
European Central Bank policymaker Axel Weber on Monday urged a tight cap on the bank's government bond buying program, saying extraordinary steps taken to ease the debt crisis posed a risk to its main goal of price stability.
Trichet says euro credible, bond buys necessary - Draghi: bond buying will stop once markets functioning - Trichet says Q2 growth to be stronger than expected - Makuch: euro exchange rate good for exports
China warned on Monday that Europe's struggle to contain ballooning debt posed a risk to global economic growth, raising the specter of a double-dip recession.
Stocks fell on Friday, capping off their worst month in over a year as a downgrade by Fitch of Spain's credit rating reignited worries about euro-zone debt issues.
Stocks fell 1 percent on Friday, extending earlier losses as a downgrade by Fitch Ratings of Spain's credit rating reignited worries about euro-zone debt issues.
Talks between Spanish unions and business leaders on labor reform ended without success on Friday, the latest sign that the euro zone is struggling to steer its way out of a debt crisis and into growth.
Major U.S. indexes advanced on Thursday as investors were soothed after China denied a report that it was reviewing its holdings in euro-zone sovereign bonds due to the region's debt crisis.
Stock index futures pointed to a rise of about 2 percent at the open on Thursday after China denied a report it was reviewing its holdings in euro-zone sovereign bonds due to the region's debt crisis.
U.S. stock index futures pointed to a rise of about 2 percent at the open on Thursday after China denied a report it was reviewing its holdings of euro-zone sovereign bonds due to the region's debt crisis.
The Australian dollar appears to be building a base in the low USD0.8000s as international financial markets remain volatile.
China is reviewing its euro zone bond holdings because of growing concerns about gaping deficits in countries including Greece and Portugal, the Financial Times reported on Wednesday.
Treasury Secretary Timothy Geithner and Italian Prime Minister Silvio Berlusconi sought to support the battered euro on Wednesday, but the currency extended its decline on a report that China was reviewing its euro holdings.
Gold has exploded recently, making new highs against every major currency in the world.
Some of Wall Street's biggest names said they are frightened and worried by the debt crisis in Europe, but still do not expect a double-dip recession in the United States.
