The Australian dollar fell against its major counterparts in the European session on Friday, as investors fear that tighter monetary policy across the globe could lead to a recession.

Concerns over continued monetary tightening by the U.S. Federal Reserve and other major central banks triggered fears of a slowdown in global growth.

The U.S. Federal Reserve, the Bank of England and the European Central Bank - all signalled that they will continue to tighten policy going forward.

Comments from Fed Chair Powell dashed hopes for a pivot in monetary policy despite the risk of an economic downturn.

Oil prices fell as hawkish signals from Fed and other central banks darkened the economic outlook.

The aussie dropped to 0.6686 against the greenback and 0.9131 against the loonie, from its early highs of 0.6736 and 0.9177, respectively. The next likely support for the aussie lies around 0.63 against the greenback and 0.885 against the loonie.

The AUD/NZD pair touched 1.0528, its lowest level in a year. The currency may challenge support around the 1.035 level.

The EUR/AUD pair was higher, at more than a 10-month high of 1.5918. The aussie is seen finding support around the 1.62 level.

The AUD/JPY pair touched a 9-day low of 91.60. On the downside, 86.5 is likely seen as the next support level for the aussie.

Looking ahead, Eurozone CPI for November and trade data for October are due in the European session.

Canada new housing price index for November and wholesale sales for October will be out in the New York session.

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