The news is likely to influence the Reserve Bank of Australia to drop interest rates when its officials meet on Tuesday. The Australian dollar also edged downward in value when compared with the Japanese yen, noting its first fall in value to the country's currency for the first time in five trading session.
"The Australian dollar has been much more tightly correlated with swings in global risk appetite and asset prices than it has domestic economic developments and RBA policy," states a client note authored by Group of'10 foreign-exchange strategy head Todd Elmer, cited by Bloomberg. "With perceived tail risk from the European sovereign debt crisis diminishing despite concerns on a potential Greek default, this likely spells additional Australian-dollar appreciation."
But the dollar of Australia continued drawing upward influence from positive job market data released Friday by the U.S. Labor Department, according to Dow Jones Newswires.
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