Money The Australian dollar is charging higher as confidence improves around the world

08:15  10 july  2018
08:15  10 july  2018 Source:   businessinsider.com.au

Australia shares to inch higher, NZ up

  Australia shares to inch higher, NZ up Australian shares are set to edge higher on Tuesday, tracking Wall Street, as weakness in the Australian dollar could prompt buying in healthcare stocks ahead of the Reserve Bank of Australia's cash rate decision due later in the day. The Aussie dollar hovered near recent lows on Monday, while the country's central bank is seen holding rates at record lows until next September, according to a Reuters poll. The local share price index futures (YAPcm1) rose 0.34 percent or 21 points to 6158, a 19.8-point discount to the underlying S&P/ASX 200 index (.AXJO) close. The benchmark fell about 0.3 percent on Monday.

The Australian dollar is on the charge , hitting the highest level since late April on the back of strong economic data and renewed US dollar weakness. An icon of the world globe. Weekly Australian consumer confidence data from ANZ will also arrive alongside the PSI report.

In Australia , the weekly ANZ-Roy Morgan consumer confidence survey will be released at 9.30am AEDT. NOW READ: The Commonwealth Bank reckons the Australian dollar is going higher . NOW WATCH: Money & Markets videos.


  The Australian dollar is charging higher as confidence improves around the world © Joel Carrett/AAP Image The Australian dollar ripped higher on Monday, rising on a wave of improved investor confidence across the world.

Here's the scoreboard as at 7am in Sydney.

AUD/USD0.7464,0.0036,0.48%
AUD/JPY82.72,0.67,0.82%
AUD/CNH4.9422,-0.0052,-0.11%
AUD/EUR0.6351,0.0026,0.41%
AUD/GBP0.5629,0.0048,0.86%
AUD/NZD1.0912,0.004,0.37%
AUD/CAD0.978,0.0055,0.57%

After pushing back above the .7400 level on Friday on the back of a recovery in Chinese financial markets and broad-based US dollar weakness following the release of the US non-farm payrolls report for June, the AUD/USD went on with the move on Monday, boosted by continued buying in the Chinese yuan which bolstered confidence across the Asia region.

Aussie dollar rallies after falling to 18 month low

  Aussie dollar rallies after falling to 18 month low The Australian dollar has risen against its US counterpart, consolidating the previous day's declines where it fell to the lowest level in around 18 months.The Australian dollar has bounced back and is higher against the greenback, after trading at its lowest level in around 18 months on Thursday.

The Australian dollar screeched higher across the board on Tuesday as conciliatory remarks from China and the United States helped boost confidence that a damaging trade war between two may be avoided. A magnifying glass icon. An icon of the world globe.

Australian Dollar Talking Points: Australian business confidence was unchanged in June. However firms; assessment of current conditions improved . The sample’s take on current conditions however rose to 15, from 14 last time around , with strength reportedly spread across almost all industries.

The AUD/USD rose to as high as .7483 at one point during the session before giving back some ground in North American trade.

  The Australian dollar is charging higher as confidence improves around the world © Provided by Business Insider Inc Reflecting the improvement in investor sentiment seen in stocks, commodities and currency markets, the Aussie rose by close to 1% against the Japanese yen.

It also recorded a similar gain against the British pound on the back of renewed political uncertainty in the UK.

"The resignation of the British Foreign Secretary, Boris Johnson, illustrated the deep division within the British government over the UK government’s Brexit plan," said Richard Grace, Chief Currency Strategist at the Commonwealth Bank.

"Markets dislike the political uncertainty.

"We anticipate the downward pressure on GBP will continue... as speculation of a 'no confidence' vote and leadership challenge upon Prime Minister Therese May mounts."

The Australian dollar has fallen sharply as trade fears flare again

  The Australian dollar has fallen sharply as trade fears flare again The Australian dollar tumbled into close on Tuesday, giving up modest gains seen earlier in the session. However, that all changed just minutes ago following reports the United States is poised to publish a list of $US200 billion in new tariffs that will be applied on Chinese imports entering the country.

By charging for everything from pillows to legroom, airlines around the world brought in an extra 27 billion dollars in 2012. Similar from the Web. The Australian dollar is still charging higher | Business Insider - www.businessinsider.com.au.

At 2%, rates are higher than in most other industrialised economies, but the gap with the rest of the world is starting to narrow. Not all of the news is negative for the Australian dollar . International investors look to sovereign risk as a vital factor when allocating their investment flows around the

As was the case on Monday, the Aussie's direction will likely be dictated by the performance of Chinese financial markets today, especially the Chinese yuan which has proven to be influential on the Aussie in recent weeks.

While there is a smattering of economic data scheduled in Asia, none appears likely to generate any significant volatility in the Aussie.

Domestically, ANZ will release its weekly Australian consumer confidence survey at 9.30am AEST. That will be followed two hours later by the NAB's Australian business confidence survey.

Regionally, China will also release consumer and producer price inflation data for June at 11.30am AEST. This report used to generate some interest across markets in the past but that's diminished in recent years.

"The NAB business survey is unlikely to have much influence on AUD, nor will the release of Chinese June inflation data," Grace says.

Australia, New Zealand dollars gain respite as China calls for calm

  Australia, New Zealand dollars gain respite as China calls for calm <p>The Australian and New Zealand dollars gained a respite from recent selling pressure on Wednesday, as Beijing's efforts to stabilise its currency soothed sentiment just enough to spark profit-taking on U.S. dollar positions.</p>The Aussie dollar (AUD=D3) got an added lift from solid data on domestic retail sales and crawled up to $0.7403, moving away from an 18-month trough around $0.7311.

An icon of the world globe. the charge , rising to the highest level in three months on Thursday on the back of a bumper Australian retail sales for November and broad-based US dollar weakness. “It was argued that communication needed to evolve gradually in step with improving economic data

The Australian Dollar has suffered grievously against the US Dollar for most of this year, but may be at last finding a floor. But, AUD /USD has now fallen from over 80 US cents to around 73. Dollar Starts to Lose Traction as China Trade War Takes Effect, Next the World ?

Updated Chinese monetary growth and new lending data is also expected to drop at some point during the session.

Later in the session, data highlights include UK industrial production, GDP and trade figures, German ZEW survey, housing starts and building approvals from Canada along with NFIB Small Business Optimism and JOLTS job openings from the United States.

Of course, markets will also be on the lookout for any additional headlines in the escalating trade war between China and the United States.

"Near-term the AUD has room to trade higher, but we remain sceptical the currency can sustained a move above 75 cents," said Rodrigo Catril Senior FX Strategist at the National Australia Bank.

"We think it is only a matter of time before Trump makes an announcement on additional China trade tariffs and thus we wouldn’t be surprise to see the AUD eventually coming under renewed downward pressure."

Business confidence is faltering across Australia's retail and services sectors .
Business confidence is faltering across Australia's retail and services sectors.&nbsp; Business confidence is faltering across Australia's retail and services sectors, according to new research released today.

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