Australian dollar dropped sharply august 3 2011

Indonesia stock info Australian dollar dropped sharply august 3 2011 ; THE Australian dollar was almost two US cents lower at noon as a combination of weak data, locally and in the US, and the central bank keeping the cash rate on hold weigh on the currency.

At 12pm (AEST) today, it was trading at 107.04 US cents, down from 108.90 cents yesterday.

The Australian dollar dropped sharply after the release of retail spending figures showed a 0.1 per cent fall in spending in June, according to official figures.

Economists had forecast a 0.4 per cent rise.

The Australian dollar was trading at 107.40 US cents prior to the data release at 1130 AEST, but fell to 106.88 within seconds.

International trade figures were also out on Wednesday.

The surplus narrowed in June, to $2.052 billion in June, economists' has forecasted a $2.2 billion surplus for the month.

The Australian dollar has fallen steadily since the Reserve Bank of Australia (RBA) announced it would keep the interest rate at 4.75 per cent yesterday afternoon.

Overnight, the Australian currency further slumped on renewed fears of a US economic slowdown after a report showed a decline in American consumer spending in June.

CMC Markets foreign exchange dealer Tim Waterer said things were going from bad to worse for the Australian dollar.

"Having began the week with visions of perhaps hitting 1.11 US cents, today it traded sub 1.07 US cent after domestic retail sales and trade balance figures missed the mark," he said.

"Last week everything came up trumps for the AUD but this week has been the polar opposite. "Gold is another asset which is benefiting from the predominant safe-haven play in the market." At midday the spot price of gold in Sydney was up $US29.37 to $US1,654.33 an ounce.


Related Post:

at 10:31 PM
Labels: ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)