Risk Aversion Causes AUD to Remain Bearish

The Australian dollar remained bearish against its safe-haven currency rivals yesterday, following negative European news. The AUD/USD fell as low as 0.9710 during the morning session before staging an upward correction and eventually reaching 0.9809. Against the Japanese yen, the aussie dropped as low as 77.07 before correcting itself. The pair stabilized around 77.60 during afternoon trading. Turning to today, analysts are warning that without significant improvements in the euro-zone crisis, riskier currencies like the AUD are unlikely to stage a meaningful recovery. Traders will want to monitor any announcements out of the euro-zone for clues as to what Greece's future is in the euro-zone. Any additional negative developments could weigh down on the AUD.

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