Australian Dollar Resilient Despite Euro Jitters

 
   By James Glynn 
 

        SYDNEY--The Australian dollar was higher in Asia trading Tuesday, despite continuing market fears linked to Greece's potential exit from the eurozone after a referendum scheduled for this weekend.
        European and Greek leaders will continue to campaign this week to persuade Greek voters that one of two imperfect referendum choices will bring them the least pain.
        Greece's government is trying to assure voters that a "no" to the austerity demands of European authorities and the International Monetary Fund would bring them a better bailout deal, including debt relief.
        Greek Prime Minister Alexis Tsipras said late Monday that "the higher the participation and the number of people voting 'no,' the stronger our position will be," though he added that he would accept the vote's outcome regardless.
        European leaders have countered that a "no" to creditors' demands for economic retrenchment would lead to a traumatic Greek exit from the euro.
        As of Tuesday, Greece will be cut loose from international rescue loans for the first time in more than five years. It will also default on a EUR1.55 billion (US$1.73 billion) IMF payment, whose deadline is the same day.
        Late Monday, S&P downgraded Greece's credit ratings deeper into junk territory, while speculating that the probability the country will exit from the eurozone is roughly 50%.
        At 0550 GMT, the Australian dollar was trading at US$0.7679, compared with US$0.7655 late Monday.
        The Greek crisis is demonstrating the Australian dollar's newfound resilience to global jitters, said Sean Callow, currency strategist at Westpac.
        "It looks as though foreign investors do not view turmoil in European markets, or the slide in Shanghai for that matter, as sufficient cause to sell the Aussie," he added.
        A steady near-term outlook on central bank interest rates and iron-ore prices well off April lows reinforce the case for Aussie stability in the near term, Mr. Callow said.
        Write to James Glynn at james.glynn@wsj.com
        (END) Dow Jones Newswires

        June 30, 2015 02:25 ET (06:25 GMT)

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