2010.09.2400:16:00UTC+00Aussie Recovers From Multi-day Lows Against U.S. And Canadian Dollars

The Australian dollar that slipped to multi-day lows against the U.S. and Canadian dollars in early Asian deals on Friday recouped its losses after 8:00 pm ET.

The aussie also bounced back against the euro and remained higher versus the yen.

Tracking cues from Wall Street, where stocks declined overnight amid concerns about the economy following an unexpected rise in jobless claims, the Australian market is trading lower today.

The benchmark S&P/ASX 200 index is down 26.40 points or 0.6% at 4,607.20. The broader All Ordinaries index is trading at 4,656.40, down 24.60 points or 0.5% from its previous close.

A report from the Reserve Bank of Australia showed that the central bank sold a net A$397 million in the foreign exchange market in August. The bank had sold a net A$570 million in July.

The RBA bought a net A$405 million in the forex market from the Australian government in August. A net A$608 million was bought from the government in the previous month.

The Australian dollar that declined to a 3-day low of 0.9465 against the U.S. dollar and a 2-day low of 0.9800 against the Canadian dollar in early Friday Asian deals at 8:00 pm ET bounced back thereafter. At present, the aussie is worth 0.9830 against the loonie and 0.9515 against the greenback, compared to yesterday's close of 0.9816 and 0.9488, respectively. The next upside target level for the aussie is seen at 0.986 against the loonie and 0.955 against the greenback.

During early Asian session on Friday, the Australian dollar climbed against the Japanese yen. The aussie-yen pair is now worth 80.50, up from yesterday's close of 80.05. If the aussie rises further, it may likely find resistance around the 81.4 level.

The Australian dollar that fell to 1.4061 against the euro in early Friday Asian deals at 7:40 pm ET rebounded thereafter. Currently, the aussie is worth 1.4027 per euro. On the upside, 1.398 is seen as the next target level for the aussie. The euro-aussie pair closed yesterday's trading at 1.4038.

Traders are now likely to focus on the European session, in which the French final second quarter GDP, Italian July retail sales, German import price index for August and IFO business climate index for September are expected.

Across the Atlantic, the U.S. durable goods orders and new home sales - both for August are scheduled for release in the New York session.

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