Australia Dollar Declines Against Major Peers on Risk Aversion

The Australian dollar fell with crude oil and stocks after a U.S. official said the Federal Reserve’s new bond-buying program likely won’t boost economic growth, fueling an investor shift from higher-risk assets.

The Aussie dropped against all of its 16 most-traded counterparts as Philadelphia Fed President Charles Plosser said that economic research indicates additional asset purchases are “unlikely to reduce long-term interest rates by a significant amount” and that lowering rates “by a few more basis points” won’t spur growth and hiring. The New Zealand dollar fell versus its U.S. peer amid speculation a political clash in Spain may impede attempts to resolve the region’s debt crisis.