By: Hillel Fuld
The European currency enjoyed a comeback in Asia on Thursday, having reached an all time low againt the Swiss franc overnight, with traders finding increasing buying interest emerging from players in the area specifically central banks.
However, the single currency's outlook remained unstable at best and more decreases into 2011 are very probable as the euro zone debt crisis is expected to drag on.
On the other hand, the AUD was back at parity against the USD thanks to global optimism about the economy, which has supported commodity rates and global stocks .
The diverging moves showed investors preferred safe-haven currencies like the Swiss franc within Europe, but were also keen on risk currencies such as the Aussie given the generally more upbeat outlook particularly for emerging economies.
Trading, however, was thin in Asia with Tokyo closed for a public holiday and as the year-end holidays approach. Many of the major currency pairs traded in slim, 20-40 point ranges.
“People have packed up shop really and so we're seeing quite whippy ranges," a dealer at an Australian bank said.
The EUR was previously at $1.3112 , having traded in a tight range between $1.3097 and $1.3120. Bids were seen lined up around $1.3070, and offers around $1.3130/50.
In the past week, the single currency has fallen about 1 percent against the greenback.