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Aussie Trade

December 20, 2006 on 1:09 pm | In Australian Dollar | Add Your Comment

The Aussie dollar traded firmer today (Wednesday) after favourable crossrates against the Japanese yen. However, Aussie trade was stagnant with little stimulus from local or offshore data. The Aussie dollar has recovered from its recent lows of just below 78 cents and low it lies around 78.41 US cents. The Aussie was up to Y92.59 from 92.06 yesterday. US Treasurys initially fell in response to U.S. November producer price index (PPI) data and a report on housing starts but recovered in the afternoon, closing unchanged. The Aussie traded stronger as a result of crossrates from a firmer Euro / Japanese Yen which rallied after comments from Bank of Japan Governor Fukui suggesting Japan’s inflation and consumption data had been particularly weak. The New Zealand dollar also rose to fresh three month highs against the Aussie from strong consumer confidence data and the kiwi third-quarter current account data.

More Australian Dollar Trading

December 19, 2006 on 1:03 am | In Australian Dollar | Add Your Comment

The Australian dollar recovered somewhat from a daily dip down to US$0.7775 in New York trade and the currency is now hovering above 78 cents. Local economic news is scarce around this time of the year – more major economic news are coming in the new year. Australian Government bonds ended slightly firmer, moving away from their year lows. A quiet U.S. Treasurys market yesterday meant few leads were on offer for local traders. Interest is focused on the release later today for the US November producer price index (PPI) data and a report on housing starts data. At 0530 GMT, the Australian dollar was at US$0.7802, down from US$0.7812 late Monday and against the Japanese yen, the Australian dollar was down from Y92.25 at Y92.10.

Aussie Dollar Trading

December 18, 2006 on 4:46 pm | In Australian Dollar | Add Your Comment

The Aussie dollar drifted lower in trading today after the US dollar found some strength. Australian government bonds closed lower after a mixed session in the U.S. Treasury market on Friday after U.S. November inflation data surprised on the downside. At 0530 GMT, the Aussie dollar was at US$0.7812, down from last weeks close of US$0.7820 late last Friday. The Aussie dollar traded at Y92.25 against the Yen, up from Y92.17. The Aussie dollar currently has an “overhang of speculative long positions and weaker metal prices” posing as negative factors according to Katie Dean, senior economist at the ANZ bank. Australian commodity export earnings in 2006-07 had a downgraded forecast which further cooled demand for the Aussie dollar. The Australian Bureau of Agricultural and Resource Economics said it expects a 13% increase in export earnings in 2006-07, down from an earlier forecast of 14%. The downgraded forecast was attributed to worsening drought conditions across most of the country which are expected to cause farm production drop by 62% in 2006-07. Peter Costello, the Australian Treasurer will release the updated budgetary and economic forecasts for 2006-07 on Wednesday (20th December 2006). Estimates point to a surplus of A$8 billion in the budget. The government had forecast a A$10.8 billion surplus in the May budget.

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