saintofsilence Posted June 1, 2009 Share Posted June 1, 2009 (edited) Dollar ends day above 80 US cents AAPJune 01, 2009 05:46pm+-PrintEmailShare THE dollar has closed at an eight-month high after soaring above $US0.8000 in the offshore session and building on those gains during the Asian trading day. At 5pm (AEST), the dollar was trading at $US0.8086, up 1.6 US cents - or 2 per cent - from Friday's close of $US0.7927. It was the local currency's strongest close since September 29 last year, when it finished at $US0.8218. During the day, the unit moved between a low of $US0.7993 and high of $US0.8087 reached just before the local close. The dollar broke through $US0.8000 in New York trade as investors abandoned the US dollar after encouraging economic data from Europe and Asia raised hopes of a global recovery. The unit came under brief selling pressure at the start of the local trading day, but the move quickly stalled. Weak domestic economic data, in the form of declining company profits and falling business inventories, failed to dampen enthusiasm for the dollar. Kinetic Securities chief economist Clifford Bennett said some investors were gradually coming around to the view that the worst of the slowdown in the Australian economy was over. "People are starting to grasp the idea now, as more data comes through, that they are not going to see the apocalyptic downturn in the Australian economy," Mr Bennett said. "I expect that the Australian economy has bottomed in February/March, is already on the uptick, and data will continue to suggest that, going forward." "It's really important that we stop thinking that we are the tail of the US dog, we no longer are." Mr Bennett said the Reserve Bank of Australia (RBA) was at the end of its easing cycle - further supporting the local unit - with its next monetary policy move likely to be a 25-basis-point increase in December or January. The RBA is widely expected to leave the cash rate on hold at a 49-year low of 3 per cent at its monthly board meeting tomorrow. Mr Bennett tipped the dollar to reach $US0.8900 by the end of 2009 before surging past parity and towards $US1.08-$US1.12 over the next three to five years. "The Australian dollar is on a sustained bull trend," Mr Bennett said. "The outlook for the US dollar is dire, I expect the US dollar to continue to fall rather sharply." Mr Bennett said there might be some US dollar buying on the overnight session following General Motors' bankruptcy protection announcement expected at 10pm (AEST) tonight. Mr Bennett said he expected the dollar to remain well supported as investors pushed the currency towards $US0.8150. "You might see a momentary bounce in the US dollar and a bit of a pullback in the Aussie, but that won't change the fact that the overall trend is higher for the Aussie," he said. Dollar ends day above 80 US cents AAPJune 01, 2009 05:46pm+-PrintEmailShare THE dollar has closed at an eight-month high after soaring above $US0.8000 in the offshore session and building on those gains during the Asian trading day. At 5pm (AEST), the dollar was trading at $US0.8086, up 1.6 US cents - or 2 per cent - from Friday's close of $US0.7927. It was the local currency's strongest close since September 29 last year, when it finished at $US0.8218. During the day, the unit moved between a low of $US0.7993 and high of $US0.8087 reached just before the local close. The dollar broke through $US0.8000 in New York trade as investors abandoned the US dollar after encouraging economic data from Europe and Asia raised hopes of a global recovery. The unit came under brief selling pressure at the start of the local trading day, but the move quickly stalled. Weak domestic economic data, in the form of declining company profits and falling business inventories, failed to dampen enthusiasm for the dollar. Kinetic Securities chief economist Clifford Bennett said some investors were gradually coming around to the view that the worst of the slowdown in the Australian economy was over. Related Coverage Dollar ends the day lower NEWS.com.au, 28 May 2009 Dollar strengthens on US consumer data NEWS.com.au, 27 May 2009 Dollar higher despite consumer gloom NEWS.com.au, 20 May 2009 Market rally drives dollar higher NEWS.com.au, 19 May 2009 Dollar dips but closes higher NEWS.com.au, 15 May 2009 "People are starting to grasp the idea now, as more data comes through, that they are not going to see the apocalyptic downturn in the Australian economy," Mr Bennett said. "I expect that the Australian economy has bottomed in February/March, is already on the uptick, and data will continue to suggest that, going forward." "It's really important that we stop thinking that we are the tail of the US dog, we no longer are." Mr Bennett said the Reserve Bank of Australia (RBA) was at the end of its easing cycle - further supporting the local unit - with its next monetary policy move likely to be a 25-basis-point increase in December or January. The RBA is widely expected to leave the cash rate on hold at a 49-year low of 3 per cent at its monthly board meeting tomorrow. Mr Bennett tipped the dollar to reach $US0.8900 by the end of 2009 before surging past parity and towards $US1.08-$US1.12 over the next three to five years. "The Australian dollar is on a sustained bull trend," Mr Bennett said. "The outlook for the US dollar is dire, I expect the US dollar to continue to fall rather sharply." Mr Bennett said there might be some US dollar buying on the overnight session following General Motors' bankruptcy protection announcement expected at 10pm (AEST) tonight. Mr Bennett said he expected the dollar to remain well supported as investors pushed the currency towards $US0.8150. "You might see a momentary bounce in the US dollar and a bit of a pullback in the Aussie, but that won't change the fact that the overall trend is higher for the Aussie," he said. http://www.news.com.au/business/story/0,27...3-31037,00.html Edited June 1, 2009 by saintofsilence Link to comment Share on other sites More sharing options...
saintofsilence Posted June 1, 2009 Author Share Posted June 1, 2009 It will be great the day the AUD is stronger than the US dollar good for us aussies Link to comment Share on other sites More sharing options...
Guest Reimar Posted June 1, 2009 Share Posted June 1, 2009 Not Thailand related. ///CLOSED Link to comment Share on other sites More sharing options...
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