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SYDNEY, Oct 1 Asia Pulse - The Australian dollar was stronger at noon after reaching a five-and-a-half year high last night as the US currency came under severe pressure.
At 1200 the Australian dollar was trading at $US0.6830/35 compared with yesterday's close of 0.6802/07.
The currency hit its overnight highs of 0.6870 in line with a euro rally as the US dollar weakened on the back of some soft economic data.
However, amid rumoured intervention by the US Federal Reserve on behalf of the Bank of Japan to prop up the US dollar against yen the rally was thwarted and the Australian dollar traded back to 68 US cents.
"The US dollar continues to trade weakly particularly against euro which helped the Aussie trade higher," Citigroup head of foreign exchange Nick Waite said.
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