After achieving parity in the recent past, a hangover for the Aussie has been secured. Aussie rolled back to 0.98 at night, dropping more than three figures against the dollar last week. Here are some factors that played a role. First, a substantial proportion of closed long positions in the Australian context of the approaching end of the year. Although the Australian was weak against other major currencies (euro, yen) last week, its losses were not significant. Secondly, the dollar drew some buying interest, not only by those who covered short positions. This is partly due to signs of improvement in the American economy over the past few weeks, leading to higher yields of Treasury securities and understanding that may not require additional purchases of assets after enter into force on QE2. Currently, the Australian currency is at the center of much-needed consolidation.
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