Aussie Drops on Fed Speculations, Recovers

The Australian dollar fell versus its US counterpart and the euro today, but managed to erase the losses later. The decline was caused by speculations that the US central bank will reduce its stimulating measures.
Analysts predicted that tomorrow’s Conference Board report will show that confidence of US consumers improved from 68.1 to 70.7 this month. Such data would add to evidences of stable economic growth and could encourage the Federal Reserve to tamper quantitative easing. The Aussie (as the Australian currency is nicknamed) was falling together with other risky currencies last week due to similar outlook and continued to decline at the start of this week, yet as of now it pared losses and attempts to rally.
AUD/USD was down from 0.9639 to 0.9613, but bounced to 0.9652 as of 10:27 GMT today. EUR/AUD traded near the opening of 1.3410 after rallying to 1.3442, the highest level since November 2011.

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