Aussie's win streaks cease against yen, greenback

The value of the monetary unit of Australia dropped against the Japanese yen on Wednesday, reversing two consecutive days of gains versus the currency of the Pacific Rim nation, Bloomberg reports.

So too did the Australian dollar's rally against the U.S. dollar come to a close. After four-straight days of gains against the greenback, the value of the Aussie was dragged down by deepening concerns about the sovereign debt crisis in the euro zone. Spain's borrowing costs are on the rise as the nation prepares for another bond auction on Thursday.

"I can't see that the European developments are turning in a very positive direction," head of Asian foreign-exchange strategy Thomas Harr with Standard Chartered in Singapore told Bloomberg. "I don't think you will see a sustained risk rally."

Conjecture continues rising about the upshot of two days of meetings of policy makers with the U.S. Federal Reserve, which adjourn on Wednesday. The Federal Open Market Committee is projected to deploy a variation of Operation Twist.

The Sydney Morning Herald reports Operation Twist is the central bank selling shorter-term securities and purchasing longer-term bonds. When the FOMC adjourns Wednesday afternoon in D.C., it will be Thursday morning in Australia.