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The Australian dollar fell to a six-week low on Wednesday as renewed concerns about Europe's debt crisis led investors to dump risk assets, while a disappointing growth reading at home kept alive expectations for further interest rate cuts. The Aussie stood at $1.0540 in late trade, having fallen as far as $1.0508 after data showed GDP rose a sluggish 0.4 percent last quarter, well off forecasts for a 0.8 percent gain.
Buying interest, however, emerged just above $1.0500, with dealers citing bids from Asian central banks and Japanese investors. The kiwi was sitting around $0.8160, versus the New York close around $0.8120. It had hit a six-week low of $0.8101 overnight and had been sold off against most major currencies. The Aussie lost ground against the kiwi after the growth data, dipping around 0.5 percent to NZ$1.2915.

Copyright Reuters, 2012

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