The Australian dollar fell today, but market analysts argued that it looks more like profit-taking after the strong rally than a trend-change. In fact, the Aussie continued to rise against its US counterpart, logging the sixth consecutive daily gain.
Some economists theorized that the Australian dollar suffered as the surging US Treasury bond yields made investors take profit from higher-yielding currencies. It is not surprising to see some profit-taking considering the Aussie was rising almost without interruptions since the beginning of December. Over the longer term, the picture still looks beneficial to bulls as the rally of copper and other metals should provide support to the Australian currency, which is linked to commodity prices.
AUD/USD was up from 0.7767 to 0.7788 as of 13:23 GMT today, touching the daily high of 0.7809, which was the highest since October 24. AUD/JPY went down from 88.03 to 87.91, touching the low of 87.75.
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