The Aussie dollar was trading slightly lower against its US counterpart this morning, as ongoing European debt worries dampened risk appetite.

The Aussie dollar is finding support over improved fundamentals that saw economists revise their growth forecast for the Australian economy. Australia’s current account deficit widened to $7.8 billion in the third quarter, with exports falling by $915 million. However, the decline in exports was not as large as economists had predicted, with the ABS expecting the net exports to take 0.4% from GDP growth. Economists were expecting net exports to result in a 0.8% decline in GDP. Australia’s GDP data will be released on Wednesday at 12.30am (London time). Economists surveyed by Dow Jones Newswires are now expecting the Australian economy to grow by 0.4% in the third quarter. This compares with earlier expectations of a possible contraction. The Aussie dollar is likely to receive a boost if the GDP data does come in better than expected tomorrow, however the gains may be limited due to overall US dollar strength. The US dollar stands to benefit if risk aversion continues due to Europe’s sovereign debt concerns, or if US economic indicators point to a strengthening economy.