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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

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 ripped higher on Monday, rising on a wave of improved investor confidence across the world . 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 prelate, Cardinal George Pell, became the highest -ranking Vatican official in recent years to face criminal charges involving accusations of sexual The case will test the credibility of Francis’ initiatives to foster greater accountability after abuse scandals that have shaken the church around the world .


  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.

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.

2. The Australian dollar is charging higher as confidence improves around the world . The Aussie recorded the strongest gain against the British pound on the back of renewed political uncertainty in the UK.

The highest valuation of the Australian dollar relative to the U.S. dollar was during the period of the peg to the U.S. dollar . The Australian dollar is a reserve currency and one of the most traded currencies in the world .[6] Other factors Passenger Movement Charge . Fuel taxes. Luxury Car Tax.

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."

Australian shares advance on strength of major banks

  Australian shares advance on strength of major banks The Australian sharemarket has recorded only its second advance in the last eight sessions, driven by strong gains in the big four banks.The S&P/ASX 200 index rose 32.4 points, or 0.5 per cent to 6210.2 on Tuesday, driven by strong gains from the major banks.

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.

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.

The Australian dollar's moving around like a cat on a hot tin roof

  The Australian dollar's moving around like a cat on a hot tin roof The Australian dollar endured a wild session on Tuesday, reversing hard after falling earlier in the day as the Chinese yuan suddenly strengthened.Investors will find in hard to find reasonable yields in 2016 and may find themselves turning to unlisted property investments rather than shares.

As the 5th most traded currency in the world , the Australian dollar is also referred to as buck, dough, or the Aussie . Due to its relatively high interest rates, the Australian Dollar is often used in carry trades with the Japanese Yen.

The government has long stressed that the purpose is purely traffic management, with entry to the zone typically costing one or two Singapore dollars (50p-£1) – nominal for a country where high road taxes and certificates make car Bus use went up significantly, and road safety and journey times improved .

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."

The Australian dollar is stumbling around without really going anywhere .
The Australian dollar traded in a thin range on Monday.In the end, it basically ended up where it started.

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