The Australian dollar has still been under-performing on the crosses and was unable to make any headway above the 0.7850 level. There was a renewed retreat to just below 0.78 in local trading on Friday with evidence of significant selling against the yen undermining the currency.
Caution towards risk is still liable to prevail in the short term and the Australian currency weakened to lows below the 0.7750 level in early New York before securing a tentative correction. The currency will still find it difficult to gain any significant recovery unless there is renewed confidence in the global economy.
By: Darrell Jobman
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