aud and takeover prospects .

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    Thought some might find this interesting , especially the last paragraphs re big aud buy order and takeover speculation .


    The Australian dollar opened stronger just above $US0.6600 after a choppy overnight session across global currency markets.

    At 0700 the Australian dollar was trading at $US0.6601/06 compared with yesterday's close of 0.6589/54.

    Having initially softened to an overnight low of $US0.6563 in London, the Australian dollar traced a rallying euro as nervous United States markets ushered in September 11.

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    Macquarie Bank currency strategist Jo Masters said nervousness about the possibility of an anniversary terrorist attack combined with soft US stock futures cleared a path upwards for the Australian and European currencies.

    The Australian raced to a high of $US0.6620, a level of technical resistance, where its surge was halted.

    Ms Masters said the Australian unit may have benefited in the European timezone from headlines on Australia's strong employment.

    Yesterday the domestic currency was catapulted a quarter of a US cent when it was revealed the unemployment rate had fallen to a 13-year low of 5.8 per cent.

    Ms Masters said the Australian unit then drifted backwards in New York trade, underperforming the euro and finishing the session straddling $US0.6600.

    "This time yesterday the Aussie was looking very heavy, we traded down through those stops below $US0.6550 and we've now bounced back out of there and it feels OK, despite that choppiness," she said.

    "Maybe we're going to spend some time between $US0.6550 and 0.6620 which is a big technical resistance level and consolidate in that range and then get a feel for what's happening offshore."

    On the cross rates the Australian dollar was up across the board.

    Ms Masters said there was a large Australian dollar/British sterling order go through overnight, possibly related to a merger and acquisition flow.

    The domestic unit opened above $NZ1.13 for the first time in four weeks, she said.


 
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