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$A rises on strong trade figures

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Published on: Thursday, February 06, 2014

by AAP

The Australian dollar is edging closer to 90 US cents after another trade surplus was recorded in December.

At 1200 AEDT on Thursday, the local unit was trading at 89.74 US cents, up from 88.93 US cents on Wednesday.

The dollar jumped in value following news Australia posted another trade surplus when it was widely expected to record a deficit, Easy Forex currency dealer Tony Darvall said.

The Australian Bureau of Statistics' international trade figures for December showed Australia made a surplus of $468 million, following November's surplus of $83 million.

Economists had expected a deficit of $1.2 billion in December.

Mr Darvall said the stronger local unit increases the risk of the Reserve Bank of Australia returning to jawboning it back down when it meets on Friday.

"The RBA may talk about the Aussie's strength and where they want it to go," he said.

"They are still going to be concerned about any rally in the Aussie and we have had a double cent rally in the last 24 hours."

Meanwhile, Australian bond future prices are weaker.

At 1200 AEDT on Thursday, the March 2014 10-year bond futures contract was trading at 95.975 (implying a yield of 4.025 per cent), down from 96.035 (implying a yield of 3.965 per cent) on Wednesday.

The March 2014 three-year bond futures contract was at 97.020 (2.980 per cent), down from 97.060 (2.940 per cent).


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