Aussie falls to a new 2 month low

The Australian dollar today fell to a fresh 2 month low of .8760 versus the US Dollar, from its earlier highs of .9195 from earlier this month. The Aussie-Greenback pair fell primarily on account of the positive investor sentiment on the US economic recovery, which is expected to lead to a withdrawal of stimulus incentives.

An improvement in the US economy would mean that the yield from the AUD will reduce, making the currency less attractive to investors. The Australian dollar fell today from the .8815 levels, as the 2 year government debt prices fell to 345 bips, the level last seen around early October 2009.

Having closed yesterday, december 21 2009 at .8794, the Aussie fell today to a low so far of .8856, signaling the 5th straight session in which the charging Aussie (in the recent past), has seen a downfall.