Forex News – Aussie falls to five-month low against dollar on Greek woes

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The Australian dollar fell further against the US dollar on Monday touch a new five-month low amid ongoing political and financial turmoil in Greece.

AUDUSD dipped to 0.9979 in early European trading hours, breaking past the Asian session low of 0.9994.

Greece’s party leaders failed on Sunday to bridge differences in a marathon effort to form a coalition government, spurring the president to call a last-ditch meeting for Monday in an attempt to break a week-long political impasse amid fears the country may be forced out of the euro zone.

Greece is likely to head to a new round of elections as radical left Syriza party declined to participate in Monday’s talks.

Also adding to concerns was a news report that Fitch  ratings agency warned that it would place the sovereign ratings of all euro zone countries on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.

Further weighing on the aussie is the concern over the slowdown of growth in China, which is Australia’s major trade partner, and major importer of Australian commodities. Recent economic data from China have indicated a slowing economy.