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The Australian dollar circled the 79 US cents level during Friday's local session as the market consolidated after several days of volatile price action.
The Aussie successfully avoided testing key support at 78.60 cents in offshore trade as investors remained buyers of dips, keeping this week's seven-year high of 80.05 US cents still in the market's sights.
The AUD was $0.7884/89 compared with $0.7915/20 late here on Thursday.
The Aussie beat a hasty retreat from 80.05 cents this week, matching its March 1997 high, as the euro fell sharply, weighed by speculation the European Central Bank could enter the market to try to stem the currency's rise.

Copyright Reuters, 2004

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