Aussie dollar under pressure

Peter Trute

(Australian Associated Press)

Expectations of a looming US interest rate rise, piled on top of concerns about the longevity of monetary easing in Europe, have pushed the Australian dollar lower.

At 1700 AEST on Friday, the local unit was trading at 75.26 US cents, down from 76.33 cents on Friday.

The local currency spent Monday in a range below 76 US cents in the wake of comments in the US on Friday from Boston Federal Reserve President Eric Rosengren hinting at support for a September lift in official interest rates.

Commonwealth Bank currency strategist Joe Capurso said the Aussie was relatively unmoved during Monday’s session but had the potential to drift lower later in the week if US retail sales and inflation figures – due out Thursday and Friday – indicated strength in the US economy.

CURRENCY SNAPSHOT AT 1700 AEST ON MONDAY

One Australian dollar buys:

* 75.26 US cents, from 76.33 cents on Friday

* 77.11 Japanese yen, from 78.03 yen

* 66.91 euro cents, from 67.73 euro cents

* 103.00 New Zealand cents, from 103.40 NZ cents

* 56.73 British pence, from 57.35 pence

GOLD:

* The spot price of gold in Sydney at 1700 AEST was $US1,329.10 per fine ounce, down $US6.70 on Friday’s price of $US1,335.80.

BOND SNAPSHOT AT 1630 AEST ON FRIDAY

* CGS 5.25pct March 2019, 1.5702pct, from 1.5202pct on Friday

* CGS 4.25pct April 2026, 2.0455pct, from 1.9623pct

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract was at 97.9325 (implying a yield of 2.0675 per cent), down from 98.018 (1.982 per cent) on Friday.

* September 2016 3-year bond futures contract was at 98.47 (1.53 per cent), unchanged.

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS

 

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