AUD currency rates continue to rise

The Aussie opened up higher this morning pushing back towards 0.78 cents against the U.S. Closing overnight bid ranges between 0.7770 and 0.7780 became the session’s high as the local currency made steady gains. On the cross rates the Aussie managed to reclaim some ground against the Euro moving briefly above 0.5700. Modest gains against the Pound, Yen and the Kiwi rounded off a positive night for the AUD. trading both yesterday and overnight was thin with most traders and holiday. The Aussie recovery was seen as a knee-jerk reaction to resurgence in commodity prices, which have recently weakened. The greenback lost ground after the announcement of the Chicago Purchasing Managers Index came in at 61.2 down from 65.2 last month. The result was well below expectations 63.1. The EUR/USD moved back above 1.36 as the greenback sell off started Holiday trading has left the AUD/USD in a strong position between 77 and 78 cents going into 2005. While the Aussie is carrying momentum, cautionary stop losses are already appearing for next week? With weaker support levels and a strong market next week, the Aussie could correct itself from the recent ‘Santa Claus’ rally.