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Aussie Dollar Falls as Traders Think Recent Gains Were Excessive

“The Australian dollar weakened from a level that matched the highest in almost four months as technical indicators signaled gains in the currency may have been too rapid.

The so-called Aussie slid versus most of its 16 major counterparts after data showed inflation inChina, the South Pacific nation’s biggest trading partner, quickened more than expected and spurred concern policy makers will struggle to balance price gains and growth. New Zealand’s currency retreated from a three-week high as Asian stocks pared an earlier advance.

“The fact that the Aussie struggled so hard to break through the $1.06 level and didn’t quite make it made people wonder whether it’s due for a little bit of a pullback,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. (WBC) in Sydney. “It’s broadly going to be supported on dips.”

The Australian dollar lost 0.1 percent to $1.0584 as of 4:55 p.m. in Sydney after earlier rising to $1.0599, matching the high reached yesterday that was the strongest level since Sept. 14. It gained 0.2 percent to 94.29 yen. New Zealand’s dollar touched 84.61 U.S. cents, the most since Dec. 17, before trading at 84.26, 0.4 percent lower than yesterday’s close. It bought 75.06 yen from 75.08 in New York.

The MSCI Asia Pacific Index (MXAP) of shares was little changed from yesterday earlier gaining as much as 0.3 percent…”

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