AUD increases Slightly

 THE Australian dollar is slightly lower as investors take profits following a six-day rally.

The local currency surged last week after the US Federal Reserve announced a new round of economic stimulus and a German court said the European Central Bank (ECB) bailout fund was not unconstitutional and Berlin could participate in it.

There's definitely going to be a level on the top side where people may be looking to take profits, unless there is some further push higher.

On Friday, credit-research firm Egan Jones cut its rating for US government debt to AA minus from AA.

It will be interesting to see how the market absorbs that news.

I'm not sure if that is the reason behind this pull-back in the Aussie dollar, but I wouldn't be surprised that, at the start of the week, markets are just booking profits, taking a little bit of risk off the table and seeing what transpires.

Tomorrow, the Reserve Bank of Australia will release the minutes of its September board meeting, where it kept the cash rate at 3.5 per cent for the third month in a row.

Pound To Australian Dollar - 1.5400
Euro to Australian Dollar - 1.2466
US Dollar to Australian Dollar - 0.9494

Bye For Now

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