The Australian dollar has continued its slide downwards, following a growing sense of forboding around the issue of eurozone government debt.
At 0700 AEDT the Australian dollar was trading at 98.95 US cents, down from 100.16 cents on Wednesday.
Westpac New Zealand senior market strategist Imre Speizer said the local currency is simply following a downwards trend in Europe.
"The ECB (European Central Bank)'s opposition to stepping up and doing a bond purchase program, and (German chancellor Angela) Merkel saying she was against expanding the bailout fund anymore are factors," he said.
"Last night the ECB guys said they didn't think the bond purchase program had worked that well.
"There are increasing worries that the officials really don't have a solution, so this situation is going to continue along its path and end badly."
Mr Speizer said he did not anticipate any local data to become factor in the near-term, with the market focusing on eurozone headlines.
"I think it's a matter of watching and hoping that things change in Europe, but it's hard to see any upside in the near future."
Adding to concerns around European debt were the ten-year bond prices in Italy, which have reached almost seven per cent, raising government borrowing costs to worrying levels.
"In the next few months, there will be a massive amount of bond redemptions across Europe that will have to be re-financed," Mr Speizer said.
"But what we're seeing is the yields climb auction by auction.
"It's going to get to a point where only a few investors will be willing to step up and buy them - I think this will force the issue eventually."
