The Australian dollar fell against the Japanese yen and the US dollar yesterday and remained soft today. Like its Canadian counterpart, the Aussie managed to strengthen versus the euro.
The agreement to provide aid for Greece did not help the market sentiment. In fact, that agreement may fail as the International Monetary Fund did not accept its terms. The inability of the US politicians to find a compromise and avoid the fiscal cliff did not help traders’ confidence either.
The markets’ reaction to the news was predictably negative. The Standard & Poorâs GSCI Index fell 0.2 percent, demonstrating a decline of commodities. Other riskier assets, including the Aussie, also suffered.
AUD/USD was near 1.0449 as of 3:55 GMT today after yesterday’s drop from 1.0462 to 1.0442. AUD/JPY declined from 85.78 to 85.53. Meanwhile, EUR/AUD edged down from 1.2386 to 1.2373.
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