Australian Dollar Fell Following News The US Economy Contracted in The Final Three Months

The Australian dollar fell following news the US economy contracted in the final three months of 2012.

At 6.30am AEDT the currency was trading at 104.26 US cents, down from 104.73 US cents at yesterday’s local close.

The currency fell overnight after US government figures showed the world's largest economy contracted at an annual rate of 0.1 per cent in the fourth quarter of 2012, primarily due to cuts to defence spending.

Global stock markets fell on the news, with Germany's DAX 30 finishing 0.47 per cent lower and London's FTSE 100 down 0.25 per cent. In the US, both the Dow Jones Industrial Average and the S&P 500 opened lower.