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Money The Australian dollar is back at 80 cents

09:27  08 september  2017
09:27  08 september  2017 Source:   businessinsider.com.au

3 factors that will propel the Australian dollar to 85c next year, according to the CBA

  3 factors that will propel the Australian dollar to 85c next year, according to the CBA <p>According to the Commonwealth Bank's currency strategy team, led by Richard Grace, there's going to be further significant gains to come, forecasting that the AUD/USD will hit 85 cents by the end of 2018.</p>According to the Commonwealth Bank's currency strategy team, led by Richard Grace, there's going to be further significant gains to come, forecasting that the AUD/USD will hit 85 cents by the end of 2018.

That weighed on the US dollar as a consequence, assisting the Aussie 's move higher. Turning to Wednesday trade in Asia, the movements in the Aussie are likely to be dominated by the release of Australia 's June quarter GDP report at 11.30am AEST.

That weighed on the US dollar as a consequence, assisting the Aussie ’s move higher. Tagged In. australian stories aud australia economy and markets currencies gdp.

An Australian one dollar coin.© Reuters An Australian one dollar coin.

The Australian dollar is back at 80 US cents this morning, pushing higher in overnight trade on the back of renewed US dollar weakness and stronger commodity prices.

Here’s the scoreboard as at 7am AEST:

AUD/USD 0.7995 , 0.0053 , 0.67%
AUD/JPY 87 , -0.14 , -0.16%
AUD/CNH 5.2275 , 0.0433 , 0.84%
AUD/EUR 0.6711 , 0.0035 , 0.52%
AUD/GBP 0.6133 , -0.0008 , -0.13%
AUD/NZD 1.1050 , -0.0036 , -0.32%
AUD/CAD 0.9891 , 0.003 , 0.30%

After pushing higher in Asia following the release of strong economic data from Australia and China, the AUD/USD rallied hard at the start of North American trade, surging to as high .8027 at one point, leaving it sitting at a five-week high.

The Australian dollar just spiked

  The Australian dollar just spiked Australian dollar buyers just came out in force in the wake of this morning's balance of payments data.&nbsp;Australian dollar buyers just came out in force in the wake of this morning's balance of payments data.

80 cents is the new black it seems when it comes to the Aussie dollar which is back at that level this morning after an aborted rally to 0.8020 gave way to Economic fundamentals are an input into but not the whole metric of what I call investment fundamentals. The key here is Australian growth is strong.

THE Australian dollar is back above 79 US cents - just. The Aussie dollar is also higher against the yen but has fallen against the euro. Meanwhile, record gains overseas and a strong futures index are pointing to a good start for the Australian markets in the week ahead.

The catalyst for the move was a speech from Lael Brainard, a permanent voting member on the US Federal Reserve FOMC, who cast doubt on the prospect for another rate hike this year given weakness in inflationary pressures.

“We should be cautious about tightening policy further until we are confident inflation is on track to achieve our target,” Brainard told an audience at the Economic Club of New York.

Neel Kashkari, Minneapolis Federal Reserve Bank president, also weighed in on the debate, suggesting that previous rate hikes delivered by the Fed may actually have done damage to the US economy.

The Australian dollar is back at 80 cents

  The Australian dollar is back at 80 cents The Australian dollar is back at 80 US cents this morning, pushing higher in overnight trade on the back of renewed US dollar weakness and stronger commodity prices. Here's the scoreboard as at 7am AESTAUD/USD 0.7995,0.0053,0.67%AUD/JPY 87,-0.14,-0.16%AUD/CNH 5.2275,0.0433,0.84%AUD/EUR 0.6711,0.0035,0.52%AUD/GBP 0.6133,-0.0008,-0.13%AUD/NZD 1.1050,-0.0036,-0.32%AUD/CAD 0.9891,0.003,0.30%After pushing higher in Asia following the release of strong economic data from Australia and China, the AUD/USD rallied hard at the start of North American trade, surging to as high .

The Australian dollar is quickly closing in on the 80 cent level, boosted yet again on Monday by broad-based US dollar weakness. Here’s the scoreboard as at 8am AEDT.

But it's back knocking on the door of 80 cents again this morning currently trading at 0.7999. The bounce came for two reasons. SO it is that this Australian dollar rally can be characterised less on the basis of AUD strength and more on that of a USD collapse.

“Maybe our rate hikes are actually doing real harm to the economy,” said Kashkari in a speech to the University of Minnesota’s business school.

“It’s very possible that our rate hikes over the past 18 months are leading to slower job growth, leaving more people on the sidelines, leading to lower wage growth, and leading to lower inflation and inflation expectations.”

Kashkari is a voting member of FOMC, and has dissented against both rate hikes from the Fed this year. He is also a noted policy dove.

Along with a soft US factory orders reading for July, the downbeat tone from Brainard and Kashkari saw US 10-year bond yields fall to 2.06%, the lowest level since November last year.

That weighed on the US dollar as a consequence, assisting the Aussie’s move higher.

AUD/USD Hourly Chart.© Business Insider Australia AUD/USD Hourly Chart.

Turning to Wednesday trade in Asia, the movements in the Aussie are likely to be dominated by the release of Australia’s June quarter GDP report at 11.30am AEST.

Aussie dollar smashes 81 cent barrier, hits a new two-year high

  Aussie dollar smashes 81 cent barrier, hits a new two-year high A soaring Australian dollar has pushed through the 81 US cent mark for the first time since January 2015.The local currency has risen sharply against its US counterpart which has weakened since European Central Bank president Mario Draghi's equivocation over the bank's timeline for tapering its bond-purchasing program.

The Australian dollar is headed back toward a near four-month high after signs consumers may not be as It last traded above US 80 ¢ in September. The Australian dollar breached the US79c level on Friday. The Aussie surged on Thursday following data that showed retail sales climbed 1.2 per cent

The Australian dollar 's longest rally in 18 months is bringing out the bears. Schroder Investment Management Australia , which is also short, said the Aussie is likely to trade closer to 70 US cents than 80 cents in 12 months.

Economists are looking for a quarterly increase of 0.9%, leaving year-on-year growth at 1.9%. Those readings would be above the 0.3% and 1.7% growth rates reported in the March quarter.

Given that most economists are expecting a strong result, movements in the Aussie could well be driven by the strength of household consumption in the report, along with the factors that underpinned it. Was it driven by a reduction in savings or a pickup in employee pay?

This 10-second guide has further information on what to expect.

Coming an hour after the GDP report, Alex Heath, head of economic analysis at the RBA, will speak in Tasmania.

Outside of Australia, there is very little in the way of market moving events until the North American session.

In the US, markets will receive the ISM’s non-manufacturing PMI report for August, international trade data for July along with weekly US crude inventory data from the API.

Canada will also release trade figures for July.

On the monetary policy front, the Bank of Canada will announce its September interest rate decision, a blockbuster event given markets are evenly split as to whether the bank will add to the rate hike delivered in mid-July.

The decision will be announced at midnight AEST.

The US Fed will also announce its Beige Book on economic conditions later in the session, with most interest likely to fall on the bank’s commentary on wage and inflationary pressures.

North Korea missile launch spooks Aussie investors .
Australian shares have opened 0.39 per cent lower, with investors spooked by North Korea's latest missile launch and expected to remain cautious.At 1030 AEST on Friday, the benchmark S&P/ASX200 index was down 22.3 points, or 0.39 per cent, at 5,716.4, with the materials sector leading broad-based losses.

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