Australian Dollar Selling Pressure Easing

While the Australian dollar has drifted lower in forex trade today, selling pressures across worldwide markets have eased. Government bond prices have closed higher after the economic data out of US of a downgrade in US fourth quarter GDP (Gross Domestic Product). In local data there was an upbeat fourth quarter capital investment data where business investment lifted just 1.0 percent (seasonally-adjusted) in the fourth quarter from the third, the data included news of a sharp upward revision of expected mining sector investment through 2007-08. Miners expect investment will rise by 71% in 2007-08 over the previous year. You’ve got to remember there is still the uncertainty linked with the sharemarket which means that the Australian dollar will remain vulnerable. Watch out for Australian Retail Sales Data tomorrow.