Saturday, October 16, 2010

Aussie Retreats After Reaching Parity with Greenback

The Australian dollar traded at parity with its US counterpart today before retreating on the speculation that the Aussie rallied too fast.

The weakness of the greenback and the concerns for the US economy allowed the Australian dollar reach parity against the US currency for the first time. It looks like the traders haven’t got used to the idea of parity between these two currencies and unwilling to buy the Aussie at such high prices. The fundamentals haven’t changed, though, and the Australian currency has potential to rise further.

AUD/USD opened at 0.9944 and jumped as high as 1.0001 before retreating to 0.9951 as of 13:36 GMT.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

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