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Archive for the ‘Australian Dollar’ Category

Australian Dollar News: The Aussie was supported by domestic data showing a healthy rise in job advertisements

Tuesday, December 7th, 2010

The Australian dollar edged back today as a three session rally drew some profit taking, though it held most of its recent gains helped by expectations of extended stimulus in the Unites States.

The Aussie was supported by domestic data showing a healthy 2.9% rise in job advertisements in November which augured well for an upbeat reading from the official employment report due on Thursday. Analysts are looking for a solid rise of around 19,000 in employment and a drop in the jobless rate back down to 5.2%. Such a result would help offset a run of softer data recently and keep the Reserve Bank on inflation watch.

“Jobs should remain an ongoing key support to household income – which coupled with an on-hold RBA over coming months – should help consumption to pick-up ahead, after some patchiness recently,” said George Tharenou, an economist at UBS.

The Reserve Bank of Australia has, as expected, held interest rates unchanged at 4.75% and Governor Glenn Stevens said the market was reasonable in pricing in the next move around mid 2011. With the next interest rate rise in Australia likely to be months away and the markets expecting a slowdown in the rate of growth in the Chinese economy to control inflationary pressures sapping demand for Australian raw materials. The RBA forecasts Australia’s economy to expand 3.5% in 2011 from the average 2.7% in the first three quarters of this year with inflation and employment seen picking up in line with economic growth.

“The terms of trade are at their highest level since the early 1950s, and national income is growing strongly as a result,” Stevens said.

The RBA chief said private investment had recently started to pick up in response to high levels of commodity prices, while spending and borrowing in the housing sector continued to show signs of caution, leading to a “noticeable increase” in the saving rate. The assessments are broadly in line with Stevens’ testimony to the House Representatives’ economics committee last month, where he said it was “reasonable” to assume no further rate hikes will be imminent from the central bank for some time. The RBA has been one of the most aggressive of the major central banks in raising interest rates following the global downturn. The nation’s economy has enjoyed a robust rebound led by voracious demand for its abundant mineral resources from China and India.

Written by Tony Redondo


Currency Report: Australian and New Zealand Dollar Exchange Rates

Tuesday, November 23rd, 2010

News of a likely slow down in China sparked fears of the Australian economy’s prospects and the Australian dollar duly fell against the US dollar but remained on the up against the euro, pound and New Zealand dollar as investors decided that on balance, the problems in these parts of the world were more serious than those faced by the Australian economy.

The New Zealand dollar fell heavily against the pound and US dollar after Standard & Poor’s downgraded New Zealand’s sovereign credit outlook over the weekend.

News of the latest skirmish between the two Koreas did nothing to aid risk appetite and with the heavy falls in the Asian stock markets overnight came further losses for the risk appetite driven Australian and New Zealand dollars.


Australian and New Zealand Dollar Rate Update

Monday, November 22nd, 2010

The Australian Dollar rose to the highest level in a week against the U.S Dollar and registered sharp gains against the majority of the major currencies, as global risk appetite improved following Ireland’s request for a bailout. The move will help boost demand for growth-sensitive currencies and the New Zealand Dollar also gained to a six month high against the Yen, after the Irish prime minister Brian Cowen said that he expects talks on the bailout package to be concluded over the coming weeks. The ‘Kiwi’ also gained towards the highest level in a week versus the U.S Dollar, before a U.S report tomorrow that is expected to reveal a slowdown in existing home sales.

Written by Adam Solomon


Australian Dollar Currency News

Tuesday, November 16th, 2010

Finally, the Australian Dollar has weakened against the Pound and the U.S Dollar, after the minutes from the central bank’s last policy meeting showed that this month’s decision to raise interest rates was “finely balanced,” reducing the prospect of further rate increases in the near future.