Following a three cent rally in the previous session, the Australian dollar succumbed to profit taking on Friday night.
Trading in the Aussie has been subdued so far today with traders pausing for breath after the biggest weekly rally in the local currency in almost two years.
Also keeping a lid on things is tomorrow’s RBA meeting, with many economists tipping a cut in official interest rates.
The Kiwi dollar hit a five-week high of US$0.8240 on Friday night before profit-takers pounced, taking the unit down to a low of 0.8175 against its US counterpart (NZDUSD).
The Great British pound gained against the greenback for the third consecutive week, due mainly to the recent developments out of Europe.
Weaker-than-expected consumer sentiment and little improvement in the domestic economy did little to dim the euphoria displayed by markets late last week.
The euro gave up some ground against the greenback (EURUSD) after Italy’s borrowing costs rose at a debt sale.
Despite a move lower on Friday night, the 17-nation currency recorded its third straight weekly advance against the US dollar, its longest stretch of gains since June.
Finally, the Japanese yen climbed to yet another post war high against its US counterpart (USDJPY).
The yen dropped 4% against most of its peer during this morning’s Asian session however, after the BoJ stepped in to weaken the currency for the third time this year.