Aussie dollar reaches parity overnight
For the second time this year, the Aussie dollar hit parity with the greenback overnight. Trading at US99.89 cents this morning, overnight the dollar ranged between US99.45 cents and US100.29 cents, increasing from Tuesday’s close of US99.5 cents.
The developments overnight were positive, said Mike Jones, currency strategist for Bank of New Zealand.
“Overall, risk sentiment is still fairly bright,” he told AAP. “We heard more dribs and drabs of good news out of Europe overnight and that tended to bolster demand for the Euro and safe-haven positions in the US dollar and the yen were cut accordingly … So, in line with the high euro, the Aussie was dragged up above parity.”
Movement in the Aussie dollar for the remainder of the week may be swayed by offshore events and the appetitie for risk sentiment, said Jones. He tips it to trade between US99.6 cents and US100.8 cents today.
The move to parity was the second instance this year. The dollar first reached parity on 12 November, the first in 28 years.
Published on: Wednesday, December 15, 2010blog comments powered by Disqus
Today on Switzer
Here in Australia inflation is healthy without being excessive. In fact it is a Goldilocks situation – not too hot, not too cold, but just right!
ASIC chairman Greg Medcraft is in the Finance Minister's firing line for his comments on Wednesday that Australia is a "paradise" for white-collar criminals.
How is the bond market travelling, and what impact would a sell-off have on equities? Kumar Palghat of Kapstream Capital discusses this and much more. (Broadcast Thursday 23 October 2014.)
Earnings is beating Ebola but Doctors Without Borders could be Doctors Without Brains, and they could KO stocks!
A not-to-be-missed interview with Australian business legend Lindsay Fox, a one-time truckie who founded Linfox in 1956 which today has a turnover of $3 billion. (Broadcast Wednesday 22 October 2014.)
So what do we do about the Reserve Bank? How do you make sense of any central bank is probably the answer, but no wonder the pundits are currently so confused.