The Australian dollar rebounded today after yesterday’s decline as the positive outlook for Australia’s economy damped the negative effect of the European crisis on the attractiveness of the currency.
Concerns about the debt issues in the countries of the European Union have led to interest rate cuts by the Reserve Bank of Australia. That made the Aussie weaker. Yet the cut were followed by positive macroeconomic data, causing speculations that the Australian economy is strong enough to weather the crisis in Europe. The optimistic outlook allowed the Australian currency rebound.
AUD/USD was up from 1.0007 to 1.0048 as of 10:56 GMT today. EUR/USD dropped from 1.2490 to 1.2430.
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