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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news