Aussie Firms On Reports Of Greek Debt Resolution

Aussie Firms On Reports Of Greek Debt Resolution

The Australian dollar was slightly firmer on Wednesday as EU policy leaders made progress with their plans to resolve Greece’s debt crisis.

After reaching a ten month low against its US counterpart on Monday, the Aussie rebounded to $99.85 US cents on Tuesday evening.  Throughout Wednesday’s trade the local unit remained around the $98.75 US cent mark and closed the session marginally higher at $98.87 US cents.

Reports that a resolution to Greece’s sovereign debt crisis had been found boosted risk sentiment among traders on Wednesday. EU leaders were said to have agreed upon a new property tax which will generate funds for future bail-out payments.

However, Joseph Capurso currency strategist for Commonwealth Bank warned The Australian that this didn’t necessary guarantee continued gains for the Aussie.

"It's not going to end this week, that's for sure," he said, "I think the market will very much keep an eye on what is going on in Europe, particularly the bank funding crisis and Greece."

Mr Capurso said that he expects the Aussie to get to parity against the US dollar by the end of the year.