The Australian dollar was slightly lower late Friday with traders focused almost exclusively on the release Tuesday of first quarter inflation data, which could open the door to a cut in interest rates.A survey of 12 economists by Dow Jones Newswires projects a core inflation reading for the quarter of around 0.6%, low enough to justify a cut in interest rates.
The data are scheduled to be published Tuesday at 0130 GMT.
The Reserve bank of Australia's policy making board meets May 1. Economists expect contained inflation and weak economic growth will underpin the case for the first cut since December.
The RBA's cash rate target now stands at 4.25%. A cut to 4.00% would lower the target to levels last seen in early 2010.
"It seems, then, that the ducks are aligned for another rate cut, perhaps as early as next month," said Stephen Walters, chief economist at JPMorgan.
But Walters is not as convinced as others the RBA needs to cut interest rates. He said the RBA will face a dilemma after the CPI, which he expects won't reveal the benign inflation picture widely anticipated.
The RBA may also want to avoid being pressured into cutting interest rates, he said.
"Perhaps the RBA again will want to assert its independence of mind, particularly with public lobbying for a rate cut stepping up in recent weeks, including by government ministers and, unusually, the prime minister," Walters said.
Sean Callow, senior currency strategist at Wesptac, said the Asia trading day wasn't without some surprises.
Data showed export prices fell 7% in the first quarter of 2012, from the fourth quarter of 2011.
Callow said the outcome was "startling" and reinforced concerns about falling commodity prices. At 0700 GMT, the Australian dollar was at US$1.0333 down from US$1.0355 late Thursday. It was also trading at Y84.29 from Thursday's Y84.35.
Australian Dollar On Sturdier Ground
Australian Dollar On Sturdier Ground
Don't bet that a slowdown in the global economy will drag the Australian dollar down like it did in 2008.
Back then, Australia's currency fell off a cliff as the resources boom that fueled it sputtered.
But Australia's commodity sector is more firmly dug-in these days. In liquefied-natural-gas alone, more than $140 billion worth of projects are already under construction, compared with $15 billion in 2008. Significant committed investment in infrastructure to support massive coal and iron ore operations can't be quickly reversed either.
Record inbound merger-and-acquisition deals last year--worth $65.7 billion--also support the Australian currency as acquirers buy Aussie dollars to fund their investments. This year might not hit another record, but strong interest in resources should support continued dealmaking.
There are risks, especially slowing growth in China and India. But a hard-landing for Asia seems less likely than it did a few months ago. A more muted downturn won't pull the ground from underneath Australia's currency.
Further interest rate cuts from Australia's central bank are possible--dark clouds persist over retail and manufacturing. That could see yield-starved investors look elsewhere. Still, the Reserve Bank of Australia cut the cash rate twice late last year, with more or less no lasting impact on the exchange rate.
A seize-up in global credit markets would also weigh on the Aussie. When the markets shut in 2008, Australian banks were forced to sell local currency and buy greenbacks to meet short-term funding needs in U.S. dollars, Royal Bank of Canada strategist Michael Turner says. But the Australian banks, which have some of the highest credit ratings in the world, are less reliant on short-term funding than they were four years ago.
The Australian dollar has traded in a fairly tight range around parity with its U.S. counterpart for most of the past 12 months, compared with an average of around 75 cents for the past three decades. A deep shock to the global economy that decimates commodity prices could see a return to historical norms. A strong recovery in the U.S. that leads to higher interest rates there could be a game-changer too.
Absent such dramatic events though, the dollar's more likely to stay closer to parity this year than it is to fall back into its old ways.
Australia Shares End 1.2% Weaker After S&P Downgrades In Europe
The European sovereign debt crisis was back in the spotlight Monday after Standard & Poor's cut the credit ratings of nine euro-zone nations including France, putting downward pressure on the Australian share market.The benchmark S&P/ASX 200 index closed down 1.2% at 4147.4 points after hitting a four-day low of 4138.5. Share trading volume was light, owing to Martin Luther King Day in the U.S. and the extended summer holidays of many local traders and investors.
The materials sector led broad-based declines, with BHP Billiton, Newcrest and Fortescue Metals down 1.4%-2.7%. Financials mostly underperformed, with Macquarie down 2.3% after JPMorgan fell 2.5% following a disappointing earnings report.
With the European single currency remaining weak after falling 1.4% on Friday, traders were wary of fallout in global risk assets from S&P's downgrade of France.
"There's not a lot to drive the market higher in the short term," said Macquarie Private Wealth investment adviser John Milroy. "With the U.S. markets closed tonight, we are probably getting ahead of any further reaction that might occur in Europe. I suspect a lot of people are not yet back at their desks and the market is still very reactive," he added.
Events this week including European bond auctions, Chinese economic data, U.S. corporate earnings reports and production reports from the likes of BHP, Fortescue, Woodside Petroleum and Santos have the potential to generate volatility, Milroy said.
Defensive stocks with attractive yields were expected to be favored at the expense of cyclical stocks exposed to any flare-up in global risk aversion. Telstra held its ground, while Westfield rose 1.2%.
QBE Insurance rose 2.5% on bargain hunting after a two-day selloff last week in response to a profit warning.
Leighton Holdings was the standout in the bluechips, up 4.4% to A$21.44 after flagging underlying profit for the first half of A$350 million, 8% above its previous guidance, on a strong performance from its Australian and Asian businesses.
Linc Energy shares remained choppy, ending 3.4% lower, after the company revealed that it's in talks with a potential cornerstone investor with which it may pursue significant underground coal gasification and gas-to-liquids opportunities in China.
On the charts, traders are eyeing a triangular consolidation pattern on the S&P/ASX 200, with support and resistance indicated near 4090 and 4250.
The materials sector led broad-based declines, with BHP Billiton, Newcrest and Fortescue Metals down 1.4%-2.7%. Financials mostly underperformed, with Macquarie down 2.3% after JPMorgan fell 2.5% following a disappointing earnings report.
With the European single currency remaining weak after falling 1.4% on Friday, traders were wary of fallout in global risk assets from S&P's downgrade of France.
"There's not a lot to drive the market higher in the short term," said Macquarie Private Wealth investment adviser John Milroy. "With the U.S. markets closed tonight, we are probably getting ahead of any further reaction that might occur in Europe. I suspect a lot of people are not yet back at their desks and the market is still very reactive," he added.
Events this week including European bond auctions, Chinese economic data, U.S. corporate earnings reports and production reports from the likes of BHP, Fortescue, Woodside Petroleum and Santos have the potential to generate volatility, Milroy said.
Defensive stocks with attractive yields were expected to be favored at the expense of cyclical stocks exposed to any flare-up in global risk aversion. Telstra held its ground, while Westfield rose 1.2%.
QBE Insurance rose 2.5% on bargain hunting after a two-day selloff last week in response to a profit warning.
Leighton Holdings was the standout in the bluechips, up 4.4% to A$21.44 after flagging underlying profit for the first half of A$350 million, 8% above its previous guidance, on a strong performance from its Australian and Asian businesses.
Linc Energy shares remained choppy, ending 3.4% lower, after the company revealed that it's in talks with a potential cornerstone investor with which it may pursue significant underground coal gasification and gas-to-liquids opportunities in China.
On the charts, traders are eyeing a triangular consolidation pattern on the S&P/ASX 200, with support and resistance indicated near 4090 and 4250.
Chinese Foreign Ministry said Indian diplomat in Yiwu are prohibited from eating and medication information is untrue
Chinese Foreign Ministry said Indian diplomat in Yiwu are prohibited from eating and medication information is untrue
yiwu
Ministry of Foreign Affairs said yesterday that the Indian Consulate General in Shanghai consular officers are prohibited from eating in Yiwu, and medication during the relevant report is untrue.
yiwu
Ministry of Foreign Affairs said yesterday that the Indian Consulate General in Shanghai consular officers are prohibited from eating in Yiwu, and medication during the relevant report is untrue.
Chinese authorities to safeguard the legitimate rights and interests of citizens in China and India, strict protection of personal safety of foreign consular officials.
Foreign Ministry's regular press conference yesterday, a reporter asked: It is reported that two Indian businessmen in Yiwu, illegal detention, the Indian Consulate General in Shanghai consular officials in Yiwu, a court, for the Indian businessmen to provide consular assistance has been adversely treatment, please confirm.
"You mentioned two Indians and has now been placed in hotels, freedom of movement, the local police for them to take protective measures." Foreign Ministry spokesman Hong Lei said, "the media on the Indian Consulate General in Shanghai consular officials Yiwu is prohibited from eating and medication during the report does not fit the facts. "
Local people about the true story.
This is in arrears more than two Indian businessmen Yiwu enterprises more than 10000000 CNY. In previous court proceedings, two Indian businessmen have been issued by the guarantee, but it expires, they did not pay back the money, but turned to the Indian Consulate General in Shanghai officials.
December 31, 2011, Indian diplomat met with the trial court in Yiwu, two businessmen, not through the courts agree that Indian diplomats Take away two Indian businessmen.
Indian diplomats and businessmen, the toilet ran the court, surrounded at the gate where the Yiwu business owners blocked.
Yiwu, the officials arrived at the scene, the Indian diplomat has been sitting on the ground, claiming that they have been hit, also said they have diabetes, high blood pressure. However, upon inspection, found no signs of being hit.
Google Alert - australian dollar
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| Australian dollar rises amid European headwind | The Australian THE Australian dollar edged higher today, though the move did little to erase a week's worth of steady declines for the unit. www.theaustralian.com.au/.../story-e6frg94o-1226192971077 |
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Zac Bissell
Zac Bissell
With Commentary by. Zac Bissell Bekah Galang. Zac Johnson. Lauren O'Connor ... the delegates and us and how well we were overcoming them. —Zack Bissel
Geaney, Zac Bissell and Sam Walker respectively. Individuals who have progressed include Marcus Baggaley,. Jake Baggaley, Georgia Cairncross, Sam Walker
With Commentary by
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Bekah Galang
Zac Johnson
Lauren O'Connor
Corrina VanHamlin
This PhotoVoice project fits in well with my RCAH career. My studies in the
college focus on international issues and the quintessential RCAH keyword
"transculturation." I was constantly paying attention to the barriers between
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twitter.com/Zac Bissell - CachedZac Bissell (ZacBissell) is on Twitter. Sign up for Twitter to follow Zac Bissell (ZacBissell) and get their latest updates.
With Commentary by. Zac Bissell Bekah Galang. Zac Johnson. Lauren O'Connor ... the delegates and us and how well we were overcoming them. —Zack Bissel
Geaney, Zac Bissell and Sam Walker respectively. Individuals who have progressed include Marcus Baggaley,. Jake Baggaley, Georgia Cairncross, Sam Walker
With Commentary by
Zac Bissell
Bekah Galang
Zac Johnson
Lauren O'Connor
Corrina VanHamlin
This PhotoVoice project fits in well with my RCAH career. My studies in the
college focus on international issues and the quintessential RCAH keyword
"transculturation." I was constantly paying attention to the barriers between
the delegates and us and how well we were overcoming them.
—Zack Bissell
twitter.com/Zac Bissell - CachedZac Bissell (ZacBissell) is on Twitter. Sign up for Twitter to follow Zac Bissell (ZacBissell) and get their latest updates.
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