Aussie Bounces Back Some Of Its Late Tuesday Losses Into The Early Deals On Wednesday, Wednesday, May 02, 2007 5:42:37 AM

The Reserve Bank of Australia left its official interest rates unchanged at 6.25%. Following this release at 7:30 pm ET Tuesday, the Aussie gained a few pips across the board, but it made a steep fall soon after. The Aussie continued its downtrend in the late hours. However, in the early deals on Wednesday, the Aussie bounced back some of its losses against its major counterparts. Various European economic data which were released during the session is likely to have affected the trading in the Aussie versus the Euro.

In the evening hours on Tuesday, the Australian currency trended lower against its U.S. counterpart. At about 7:30 pm ET, following the release of the Reserve Bank of Australia`s rate decision, the Aussie strengthened slightly but it lost ground again within a few minutes. The Aussie touched a low of 0.8220 by about 12:20 am ET Wednesday and then rebounded some of its losses. As of 5:41 am Eastern Time, an Aussie fetched 0.8250 against the Greenback.

Against the Aussie, the European currency made advances on Tuesday evening in New York and this came ahead of the release of the Reserve Bank of Australia`s rate decision. However, amid the release, the euro slid briefly but it ticked higher again at about 7:50 pm ET. The uptrend helped the euro to collect as much as 1.6499 by about 11:15 pm ET. The pair showed choppy trading thereafter and extended the same trend until about 2:50 am ET Wednesday. The euro then made a steep fall and traded at 1.6453 Aussie as of 5:41 am Eastern Time.

During the evening deals on Tuesday, ahead of the release of the Reserve Bank of Australia`s rate decision rate decision, the Pound rallied versus the Aussie. Following the release, the pair shed a few pips and then followed a sideways movement. The Pound started drifting higher again at about 8:50 pm ET and fetched a high of 2.4252 by about 12:20 am ET Wednesday. Soon after, the Pound gave back most of its gains and it was quoted at 2.4155 Aussie as of 5:41 am Eastern Time.

The Australian dollar showed choppy trading against the Loonie until about 7:30 pm ET Tuesday and this was ahead of the release of the Reserve Bank of Australia`s rate decision. Amid the release, the Aussie made a few advances but the pair dropped off heavily at about 7:50 pm ET. Around midnight, the Aussie entered a tight range and resumed the same trend in the very early deals on Wednesday. At about 2:25 am ET, the pair made a sharp spike higher and has been moving further higher of late. As of 5:41 am Eastern Time, an Aussie collected 0.9179 Loonie.

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