$A hit 11-month low after Greek comments
On Tuesday 4 October 2011, 7:47 EST
The Australian dollar hit an 11-month low overnight after Greece said it would miss deficit targets this year and next year.At 0700 AEDT on Tuesday, the Australian dollar was trading at 95.63 US cents, half a US cent lower from 96.17 cents on Monday.
Since 1700 AEDT on Monday, the local unit traded between 95.40 US cents and 96.70 cents.
HiFX senior trader Stuart Ive said markets were still focused on Europe and a range of happenings overnight did not help market sentiment.
"Greece has come forward basically saying that there is an even higher chance that they're going to default," Mr Ive said from Auckland.
"The entire world is currently being dominated by events in Europe, whether you have good data or bad data.
"We do have the European finance ministers meeting at the moment, trying to remove the obstacle of Finland demanding collateral for the bailout loans.
"They are basically coming to an agreement."
Mr Ive said the US stocks had a dramatic sell off in the overnight session, which would have put downward pressure on the Australian dollar.
"That may have been off some comments by the IMF (International Monetary Fund), saying the Eurozone faces the threat of credit crunch if banks don't seek ways of improving their balance sheets," he said.
On Tuesday afternoon, the board of the Reserve Bank of Australia (RBA) will meet and is widely expected to keep the cash rate steady at 4.75 per cent.
Mr Ive said the focus for the market would be on the short statement that accompanies the decision and a possible hint from the RBA about the likelihood of an interest rate cut in the next few months.
"There is, certainly, an arguement that the RBA could cut rates in the near future and the futures market has certainly priced in a cut by the end of the year," Mr Ive said.
On Tuesday morning the Australian Bureau of Statistics will release building approvals data and balance of trade figures, both for August.
13 comments
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3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentduncan Report AbuseOccupy Australia 15th oct.
Reply - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentLord Ian of Glencoe Report Abuse
Dear un named one !!! Under your previous comment a few posts back ' the financial crisis to be is imminent '..... Under the replies section ..Why is michael thanking sheepie for your comment , unless of course Michael & the un named one are the same person .....BUSTED !!!!
Replies (2) - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentbrian Report Abuse
Notice the rip-off at the fuel station.This economy is very sick and the tax forum is simply a process to round up more cash to spend.Sadly not even Costello could fix this huge mess.
Reply - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 2 users disliked this commentLord Ian of Glencoe Report Abuse
BUY GOLD PEOPLES ! This GFC is just the beginning of the end , The writing is on the wall !!
Replies (3) - 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentjames Report Abuse
Let's get back to pure decency. Money is definately the root of all evil. So lets not worship our dollar and the things we can gain by it. Poor countries do it hard but seem a lot happier than us. Oue children think they are owed somerhing and want all that mum and dad worked years to achieve. Kids today just worship themselves today. C'mon parents introduce them to the occasional NO.
Replies (5) - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentDeste Report Abuse
Given the yield on treasury bonds is lower than 1% it shows that the Fed will find it tougher to encourage borrowing by lower interest rates. No one wants risk, anyone who has it is putting it into Treasury. In effect it's like the government printing money and people running back and saying: Here, you look after it. We don't want to invest in Canada, Australia or any other place. Then the fed is spreading money through the economy to stop deflation. Lol. Quite an interesting problem they have.
Reply - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentjames Report Abuse
A low Aussie Dollar is just what we need to get industry going. Really though, what has Greece got to do with our dollar?
Replies (2) - 3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentRussell's Report Abuse
I still do not understand how a bankrupt Greece, almost bankrupt USA and a struggling Euro is any reason to see out Aussie Dollar drop... This amazes me...
Replies (4) - 3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo!7 User Report Abuse
The financial crisis to be is imminent it must happen, and its only the beginning of more trouble as we will never get a macro model right while there is cultural differences, I am ashamed of humanity and the lack of humanity shown to people by people.
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Culture first, that means people first, we are not all the same nor should we be expected to be the same, this is life and this is what culture is, I dont want Australians to be like the English or the Greeks so why use money to make all the same.
I love the idea that in Italy once everything closed during the afternoon for lunch and a sleep.
I like it that I can go to another country and they eat beans as a staple food with chillie.
Remove world governance before world governance removes us. - 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentRudolph Report Abuse
i remember in 1950 to 1960 one car was enough.And you didn't have to try and keep up with the jone's. One present at christmas was good if you got two i was great.you use to walk to school not get driven. And after school rush home drop of your school stuff and it was down to the park or go else where to play with your mates. 'OH' mum was at home to she didn't have to work. NONE of this now home and straight home and onto the computer playing game's. talking on the mobil phone to your mate up the street Dad will lnot be home from work till 11.30 pm. kids."OH" WOULDN'T IT BE GREAT TO GO BACK TO THOSE......BAD OLD DAY'S
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