Australia’s dollar pared gains after earlier rebounding as much as 0.8 percent from the lowest level in almost three years against the greenback.
The Aussie remained lower following a three-day slide before a report tomorrow forecast to show the jobless rate matched the highest since September 2009 in May. Australia’s currency has tumbled 9.6 percent since the end of March, set for the biggest quarterly decline since the period ended September 2011. New Zealand’s kiwi dollar was little changed.
“It seemed like the world was short Aussie as we found new lows again overnight, and the market got caught on the wrong side of the move, resulting in some pretty horrid squeezes,” said Michael Turner, a debt and currency strategist at Royal Bank of Canada in Sydney. “We don’t think it’s indicative of a reversal in the Aussie’s fortunes. The general direction is still lower.” A short position is a bet that an asset’s price will fall.
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