Friday morning in Asia, the Australian dollar surged up to its highest level in almost 6-months against the euro. But the aussie eased from multi-day highs against its US, Japanese and Canadian counterparts.

Most markets across the world are closed today in observance of Good Friday holiday.

The Australian dollar soared to a 6-month high of 1.8221 against the euro in early Asian deals on Friday. The next upside target level for the aussie is seen at 1.80. At yesterday's close, the euro-aussie pair was worth 1.8304.

The euro came under heavy selling after the European Central Bank said yesterday in its monthly bulletin that the world economy, including the euro area, is undergoing a severe downturn. The April bulletin was identical to the introductory statement given by the ECB President Jean-Claude Trichet on April 2, after announcing the Governing Council decision.

The aussie strengthened to a 4-day high of 72.46 against the yen and a 3-day high of 0.8828 against the loonie at 8:10 pm ET Thursday. Thereafter, the aussie slipped and it is currently worth 72.06 against the yen and 0.8800 against the loonie, compared to yesterday's close of 72.25 and 0.8809, respectively. If the aussie weakens further, it may test support around 0.875 against the Canadian dollar and 70.4 against the yen.

The Bank of Japan board members suggested that growth estimates for the Japanese economy may require a downward revision, minutes from the March 17 and 18 monetary policy meeting revealed today.

The board members agreed that financial tensions are increasing again, the minutes showed, emphasizing the need for continued substantial liquidity. There remains significant uncertainty about the timetable for recovery, the minutes showed.

Against the U.S. currency, the aussie dropped after hitting a 4-day high of 0.7208 at 5:25 pm ET Thursday. At present, the aussie-greenback pair is trading at 0.7184 with 0.706 seen as the near term support level.

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