Futures Market News
Aussie slides amid retail spending decreases
Feb 06, 2012 12:01 PM
Monday saw the monetary unit of Australia lose value to the U.S. dollar after the nation released economic data stating spending in the retail sector fell, Bloomberg reports.
The news is likely to influence the Reserve Bank of Australia to drop interest rates when its officials meet on Tuesday. The Australian dollar also edged downward in value when compared with the Japanese yen, noting its first fall in value to the country's currency for the first time in five trading session.
"The Australian dollar has been much more tightly correlated with swings in global risk appetite and asset prices than it has domestic economic developments and RBA policy," states a client note authored by Group of'10 foreign-exchange strategy head Todd Elmer, cited by Bloomberg. "With perceived tail risk from the European sovereign debt crisis diminishing despite concerns on a potential Greek default, this likely spells additional Australian-dollar appreciation."
The value of the Kiwi, New Zealand's dollar, also sank in comparison to the greenback on Monday.
But the dollar of Australia continued drawing upward influence from positive job market data released Friday by the U.S. Labor Department, according to Dow Jones Newswires.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
