$AUD firmer on weak $USD

Submitted by Craig Strzelecki on 16 January, 2006 - 13:16

The Australian dollar opened firmer on today following a fall in the US currency on weaker data and renewed Euro strength.

At 7am (AEDT), the local unit was trading at US75.49¢, above Friday's close of US75.13¢. At noon it is hovering around the US75.70¢ mark.

The Euro's rise against the US dollar on Friday also lent support to the local currency. The European common unit regained lost ground after comments from European Central Bank president Jean-Claude Trichet were interpreted as hawkish. In a media interview, Mr Trichet said the bank needed to be "vigilant" in watching inflation expectations.

The AUD is still on the uptrend... waiting for the downturn signals...