The Aussie dollar fell to multi-month lows on Friday as investors fretted about sovereign debt problems in Europe amid concerns strained budgets could force fiscal retrenchment in many developed nations. The Aussie hit a 4-month low at $0.8639, shedding two cents overnight as risk appetite collapsed on worries about the health of the global economy.
The Aussie stood at $0.8678, with near-term resistance seen at $0.8735 and support at around $0.8635 and $0.8542. It recouped a little of its losses against the yen to stand at 77.77 yen, above a 4-month low of 76.21 yen but far below Wednesday's 80.28 finish.
The Aussie also pared its overnight losses against the euro to stand at 0.6327, above a five-week low of 0.6263. Taking cues from flows into safe haven US Treasuries, Aussie bond futures gained. Three-year bond futures added 0.060 points to 95.250, and ten-year futures rose 0.060 points to 94.540.