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SYDNEY, Oct 1 Asia Pulse - The Australian dollar opened lower today after surging to a five and a half year high last night.
At 0700 the Australian dollar was trading at $US0.6798/03 compared with yesterday's close of 0.6802/07.
Traders said the local unit last night moved in step with the euro which hit a high of $US1.17 as the US dollar slipped to a fresh three-year low against the yen.
The Australian and European currencies were reined in later in the New York session when the Bank of Japan (BoJ) stepped in to the market to arrest the yen's strength.
A trader said today the local unit's rise to 70 US cents now looks irresistible, opening up targets of around 75 cents in 2004.
The Australian dollar catapulted to $US0.6870 in the New York session, its charge sparked by worse than expected consumer confidence levels in the US.
But the central bank of Japan stepping into the market to halt yen strength allowed the US dollar to lift from its lows and the Australian dollar retreated to actually open slightly ...