The Australian dollar was little changed today as the trading session was quiet while US markets were closed for a holiday. The currency was soft against the Japanese yen, which was especially strong today.
The Aussie held its ground today, but may fall later as traders anticipated bad fundamental data. Tomorrow’s report is expected to show slowdown of inflation from 1.4 percent in the third quarter of 2012 to 0.4 percent in the fourth quarter. That would add to evidences of economic weakness in Australia, damping the appeal of the Australian currency.
It is not unknown for AUD to ignore domestic fundamentals and that may help the currency to gain even in case of poor macroeconomic news. Yet for now AUD remains subdued, especially against JPY, which is unexpectedly strong today.
AUD/USD traded at 1.0510 after opening at 1.0506 and EUR/AUD traded near the opening price of 1.2664 as of 18:06 GMT today. Meanwhile, AUD/JPY declined from 96.64 to 94.32.
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