For a second-straight trading session, the Aussie gained against the yen but it dropped to its lowest value in about three weeks against the U.S. dollar. Policy makers with the Reserve Bank of Australia are preparing to convene during the first week of next year.
Dow Jones Newswires reports a financial institution stated the Aussie is forecast to bounce back from losses against the dollar as the year continues.
“These positions were originally opened to sell the euro on a pessimistic outlook for the eurozone economy and to buy the Australian dollar because of its new status as a safe-haven currency,” states a market commentary issued by ANZ, noting sales are likely to remain strong. “Our best guess is that these speculative accounts still have more positions to close out. Levels of $US1.02-$US1.03 would not be surprising over the next few weeks.”
But the Aussie lost value against the shared currency of the European Union as signs developed about the economy of the 17-nation region bouncing back.
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