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Money The Australian dollar's been hosed

06:05  12 july  2018
06:05  12 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 (sign: $; code: AUD ) is the currency of the Commonwealth of Australia , including its external territories Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, Tonga, Tuvalu, and Vanuatu.

The Australian dollar tumbled on Wednesday, recording its largest decline in a month. The catalyst was an escalating in trade tensions between the United States and China, something that took its toll on stocks, commodities and any China-linked asset, including the Aussie .

a man riding a wave on a surfboard in the rain© Provided by Getty

    The Australian dollar tumbled on Wednesday, recording its largest decline in a month.

    The catalyst was an escalating in trade tensions between the United States and China, something that took its toll on stocks, commodities and any China-linked asset, including the Aussie.

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

    AUD/USD 0.7366 , -0.0092 , -1.23%

    AUD/JPY 82.49 , -0.28 , -0.34%

    AUD/CNH 4.9516 , -0.0078 , -0.16%

    AUD/EUR 0.6308 , -0.0041 , -0.65%

    AUD/GBP 0.5576 , -0.0041 , -0.73%

    AUD/NZD 1.0898 , -0.0006 , -0.06%

    AUD/CAD 0.9725 , -0.0053 , -0.54%

    "[The] reaction to the US plans to impose tariffs on an additional $US200 billion of Chinese goods has triggered a sell off across risk assets overnight," said Rodrigo Catril, Senior FX Strategist at the National Australia Bank.

    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.

    TOKYO, Sept 4- The dollar firmed on Tuesday as investors bid up safe haven assets amid tensions around global trade and strains in emerging market currencies, while the Australian dollar pared losses after Australia ' s central bank kept interest rates on hold. On Saturday, Trump said there was

    The Australian dollar tumbled back below US74c in overnight trade on continued strength in the US dollar , during a busy session on currency markets. Around 7 am AEST the Australian dollar fell as low as 0.7372, its lowest point for the week and 0.7% down for the session.

    "European and US equities are down 0.5% and 1.6% and the commodity complex is also a sea of red with Brent oil down over 6%."

    Along with an escalation in trade rhetoric between the two sides, the US dollar also received tailwinds from stronger-than-expected US economic data with producer prices inflation and wholesale inventories both beating expectations, adding to the case for stronger economic growth, faster inflationary pressures and continued rate hikes from the Fed.

    The strength in the greenback, combined with the sharp deterioration in investor sentiment, saw commodity prices tumble across the board.

    As mentioned above, crude oil was smoked, as were base metals. Even precious metals -- regarded as safe-haven assets -- were pressured.

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

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

    Importance of the Australian Dollar The central bank in Australia is called the Reserve Bank of Australia . As the 5th most traded currency in the world, the Australian dollar is also referred to as buck, dough, or the Aussie .

    Compounding the Aussie dollar weakness this morning, Attrill notes that Chinese export and import figures released on Sunday both came in well below market expectations. “Though the overall trade surplus of .6 billion was in line with expectations, this came about on weaker than expected

    It was plain ugly.

    Given the Aussie is not only a commodity-linked currency but also deemed by many to be a China-proxy, it's little wonder the AUD/USD finished the session nursing a loss of over 1.2%.

    The decline was the largest in percentage terms since June 14, and the third-largest this year.

    AUD/USD Hourly Chart© Provided by Supplied AUD/USD Hourly Chart

    The Aussie also lost ground against the crosses, including the New Zealand and Canadian dollars, with the latter supported by a increase in official interest rates from the Bank of Canada.

    Turning to the day ahead, with no major data events scheduled in Asia, sentiment and technicals look set to dictate the direction of the Aussie.

    If the prevailing theme of recent weeks is maintained, the movements in Chinese financial markets, especially the Chinese yuan, could prove influential.

    All the main releases arrive in the second half of the session with CPI data from Germany, France and the United States, along with Eurozone industrial production, the headline acts.

    Kashkari and Harker from the US Fed are also delivering speeches.

    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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