Australian Currency Rebounds, Down Over Week

The Australian dollar pared its two-day decline as the leaders of the Group of Twenty nations pledged to resolve the problems of the global economy and prevent another worldwide financial crisis. The G-20 meeting had positive effect on commodity currencies, including the Aussie (the nickname of the Australian dollar). The confirmation of Australia’s AAA credit rating and the stable outlook issued by Standard and Poor’s also bolstered the currency. The future of the Australian dollar looks dim, despite the optimism brought by the G-20 meeting. The Aussie fell 5.4 percent over this week. The meeting itself hadn’t provided any noticeable result and it isn’t clear what news traders will hear after the weekend. Some analysts think AUD/USD would drop to 0.93 level. All in all, the Aussie’s rebound was more a sign to take profit than a signal for a reverse of the trend. AUD/USD rose from 0.9741 to close at 0.9783 after reaching 0.9668, the lowest level since November. EUR/AUD fell from 1.3818 to the closing price of 1.3796, while intraday it reached 1.3882 — the highest level since August 11. AUD/JPY rebounded from 74.25 to 74.88 and during the trading session the currency pair touched 73.63, the lowest price since August 2010.