Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AUD nestles back below 1.05 ahead of US Payrolls

15.39 AEDT, Friday 7 December 2012


AUD nestles back below 1.05 ahead of US Payrolls

By Tim Waterer (Senior Trader, CMC Markets)

US Non-Farm Payrolls is normally the flagship economic release when it comes to ascertaining US economic health, however the report may not hold as much weight as usual given that a low result will likely be attributed to Hurricane Sandy. As such, if we do see a number on the low side of the forecast, the downward reaction by risk assets may be muted.

Instead, trading conditions to end the week could be reliant on how well investors have digested the Eurozone growth downgrades now that we have had an extra day for it to sink in. Traders have been so consumed by the fiscal cliff scenario in recent weeks that the Eurozone debt saga has become almost an afterthought for the time being. However the EU downgrades may adjust the focal point of market attention.

The Australian Dollar has nestled back below 1.05 where it has spent much of the week, after having taken a glance above 1.05. Trade Balance data today showed a widening of the deficit however the result was broadly in line with expectations, and as a result there was little reaction from the AUD which hovered near 1.0480 much of the day. The currency remained quite well supported throughout Asian trading hours however there was a reluctance for the AUD to head north of 1.05 ahead of an important night of data abroad.

This week the AUD has added the string of ‘resilience’ to its bow given its ability to maintain strong buying interest under differing market conditions. The AUD has taken on something of a ‘dual-threat’ appearance given that it is a popular pick in the FX market when risk appetite rises while it is also more than holding its own when risk aversion mounts with the currency still garnering the attention of central banks around the globe. Despite the RBA interest rate cut this week, high yield relative to other currencies is serving the AUD very well indeed.

The Australian sharemarket posted quite a lively performance to end the week, with key performances from the mining and banking stocks serving as a bastion for the ASX200’s advance. The Australian market seemed to have momentum on its side this week and this was further evidenced today in light of there being little specific drivers for our market. It may be due to anticipation that we will have favourable outcomes from the US and European issues over the coming months and traders are perhaps beginning to price this upside potential into the local bourse.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news