Rates At 0530 GMT Latest Change AUD/USD 1.0249 -0.97% AUD/JPY 79.96 -1.06% 6.5% May, 2013 3.9014% -0.0254 4.5% Mar, 2020 4.1401% -0.0299 10-Yr Spread To U.S. +242 bps +16 bps SFE Dec 3-Year Futures 96.37 +0.03 SFE Dec 10-Year Futures 95.745 +0.03 SYDNEY (Dow Jones)--The Australian dollar weakened in Asia on Thursday amid renewed fears that emergency moves to restore Europe's economic stability could fail. The uncertainty was enough to overshadow strong local retail sales data in September and hints from the U.S. Federal Reserve that it is planning fresh steps to revive the world's biggest economy. Risk sensitive currencies like the Aussie and the euro were buffeted throughout the day as European leaders put pressure on Greece to accept the terms of a deal designed to ease its debt woes. "Does Greece want to remain part of the euro zone or not?" German Chancellor Angela Merkel said. "That is the question the Greek people must now answer." Greeks will be asked in a referendum in December whether they want to stay in or leave the euro zone, which also hit confidence hard across the markets. Traders said a rejection would be disastrous for Europe. "The mere mention from [French President Nicolas] Sarkozy and Merkel that Greece could leave the euro zone was enough to cause a minor panic," said David Scutt, a currency trader at Arab Bank. Reserve Bank of Australia board member Roger Corbett rammed home the heightened level of concern about Europe in an interview with Dow Jones Newswires. "Clearly Europe is a very big overhang on the rest of the world and a resolution of the situation in Europe will be a tremendously good thing for the rest of the world," Corbett said. At 0530 GMT, the Australian dollar was trading at US$1.0249, down from US$1.0350 late Wednesday. Against the yen, the currency changed hands at Y79.96, down from Y80.82. Earlier Thursday, the Australian Bureau of Statistics reported retail sales rose a seasonally adjusted 0.4% in September from August, adding to a string of recent reports suggesting a modest recovery is underway in the economy. But economists said it wasn't fast enough to concern the Reserve Bank of Australia, which cut interest rates to 4.5% from 4.75% on Tuesday for the first time in a year. "Today's data show that consumer spending is picking up only very slowly and very selectively from a protracted weak patch through 2010-11," said Julie Toth, senior economist at ANZ Bank. "Looking forward, we expect retail spending growth to remain subdued in December, due to the continuing cautionary influences of the weak global economy," Toth added. -By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com (Data provided by Reuters)

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