The Australian national currency was trading lower amid continued uncertainty over the US fiscal cliff situation. The Australian and New Zealand dollars were trading lower against most major currencies sine previous week as the uncertainty continued in the US over budget talks.

The Australian dollar was trading at $1.0404, compared to a close of $1.0396 on 21 December. New Zealand's dollar weakened 0.1 percent to 82.20 U. S. cents. Against the Yen, the Australian Dollar was trading at 87.76 yen and New Zealand's dollar was trading at 69.34 yen.

Ben Bernanke, the chief of US Federal Reserve said that the politicians could bring about a very good 2013 or face risks of a disaster adding that the uncertainty over the issue of fiscal cliff is putting pressure on the economic growth as investors are hindered by prospects of $600-billion in tax increases and spending cuts.

If the there is not agreement to resolve the situation, a series of spending cuts and tax hikes will automatically take affect from 2, January, 2013. Republicans in the US congress are opposing tax hikes for highest earners and are proposing increasing tax revenue without raising tax rates by limiting tax deductions and closing loopholes.

President Barack Obama and congressional leaders have both said that they are committed to address the issue by reaching an agreement in time. The discussions on the matter are expected to go on in the month of December. However, the developments have slowed because lawmakers and the President himself are away for Christmas holidays.