Australian Dollar At Eight Month High
Monday June 1, 2009
As winter approaches, the Australian dollar is heating up with a rise of 1.14% by the close of the stock markets on June 1st 2009 against the US dollar that is trading at 0.8086 cents. The gains see the first time the Aussie dollar has escalated above the US80c mark in eight months, and it followed from gains on Friday in New York and broad gains over the Australian stock market today.
In the US markets, both equities and commodities have risen despite a looming GM bankruptcy and other financial wobbles. The ASX followed suit and experienced broad gains over numerous sectors, including mining giants Rio Tinto and BHP. The gains are attributed to continued strength in base metals and an improving outlook on Chinese growth.
Both oil and gold prices were also attributed to help the market climb with Woodside Petroleum and Lihir recording increased share prices, and again, this follows a positive lead from the US. Further signs of economic recovery and dwindling crude supplies has seen oil prices coming in at above $US67 dollars per barrel - a seven month high in itself.
Finally, Aussie banks took back some ground after recent falls, including Commbank, which added $1.02 to its share price giving a total of $36.16. NAB lifted $0.50 to $22.52, ANZ posted gains of $0.29 and Westpac nudged slightly ahead $0.07. However, the real big mover was Macquarie with a gain of $3.74 after its bout of equity raising earlier last week.
The positive day on the Australian stock market defied gloomy reports from the Australian Bureau of Statistics that offered data showing company profits have dropped once more in the first quarter of 2009. This is expected to indicate Australia's first technical recession in 20 years, but economists are confident of a quick recovery.
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