Aussie Resumes Bearish Trend

The aussie was unable to sustain early morning gains against the US dollar and Japanese yen yesterday, and was once again moving downward by the afternoon session. The AUD/USD was up close to 70 pips during the first part of the day, reaching as high as 0.9759 before staging a bearish correction which brought it down to 0.9700. The AUD/JPY staged a downward correction after peaking at 76.95 and eventually fell as low as 76.10. Today, any negative news out of the euro-zone is likely to weigh down on the AUD before markets close for the week. Furthermore, the US Non-Farm Payrolls figure has the potential to create additional risk aversion in the market place if it comes in below the expected 151K. Should the US news disappoint, the aussie could fall further against its safe-haven rivals.

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