$A's post Fed meeting rally ends The rally that saw the Australian dollar hit a three-month high of 95.35 US cents has petered out. The Aussie dollar's rise on Thursday came after the US Federal Reserve's surprise decision to continue its $US85 billion-a-month economic stimulus program in full. At 1700 AEST on Friday, the local unit was trading at 94.50 US cents, down from 95.15 cents on Thursday. FXCM market analyst David de Ferranti said the weakness in the Australian dollar and the local share market indicate a lack of conviction by investors on the sustainability of the post-Fed meeting rally. "The market is conscious that the Fed is still set to normalise monetary policy and that it is just a question of timing," he said. The Australian dollar also suffered some downward pressure after a Labor Department report showed that US unemployment claims had a small rise last week, but it was less that analysts expected. Mr de Ferranti said that prompted traders to move back to the US dollar. At 1700 AEST, the Australian dollar was at 93.96 Japanese yen, up from Thursday's close of 93.67 yen, and at 69.84 euro cents, down from 70.31 euro cents. Meanwhile Australian bond futures prices were only slightly lower. The Australian bond market started to weaken on Friday after the Fed meeting but then regained some of the losses after a local bond tender. UBS interest rate strategist Andrew Lilley said the $800 million auction of five-year bonds was very popular, attracting bids totalling $3.320 billion. "It is a particularly good sign that there is demand for bonds globally after Australian Commonwealth government bonds were in a soft patch," he said. Also last night there was a poor auction of the US inflation-linked bonds, it was the poorest auction in around two years. So to see a strong auction for Australian Commonwealth government bonds was a timely indicator there is still a demand for bonds even in this low yielding environment. That helped support (local) bond prices after the tender. At 1630 AEST on Friday, the December 10-year bond futures contract was trading at 95.955 (implying a yield of 4.045 per cent), down from 96.045 (3.955 per cent) on Thursday. The December three-year bond futures contract was at 97.010 (2.990 per cent), down from 97.050 (2.950 per cent). Mr Lilley said the main focus for markets early next week will be the weekend German elections.