Aussie dollar falls to three-year low of US68.9c, Wall Street rebounds again

Related Story: Rising unemployment may be getting close to Reserve Bank’s ‘pain threshold’

Australian shares are expected to open higher after Wall Street, which cast away its US-China trade anxiety, rebounded for its third straight day.

Market snapshot at 7:45am (AEST):ASX SPI futures +0.7pc at 6,392, ASX 200 (Thursday’s close) +0.7pc at 6,328AUD: 68.9 US cents, 53.82 British pence, 61.63 euro cents, 75.7 Japanese yen, $NZ1.05US: Dow Jones +0.8pc at 25,863, S&P 500 +0.9pc at 2,876, Nasdaq +1pc at 7,898Europe: FTSE 100 +0.8pc at 7,353, DAX +1.7pc 12,310, CAC +1.4pc at 5,448, Euro Stoxx 50 +1.6pc at 3,439Commodities: Brent crude +1.4pc at $US72.79/barrel, spot gold -0.8pc at $US1,287/ounce

At 7:16am (AEST), ASX futures were up 46 points or 0.7 per cent.

However, the Australian dollar had fallen substantially to 68.9 US cents, its lowest level in more than three years — on growing anticipation that the Reserve Bank would cut interest rates in the next few months.

The local currency fell after it was revealed, on Thursday, that Australia’s unemployment rate lifted to 5.2 per cent.

“The main reason for the weaker Australian dollar was a stronger US dollar,” said Commonwealth Bank currency strategist Joseph Capurso.

“However, yesterday’s Australian April labour force report may have had some dampening impact also.

“We anticipate downward pressure will remain on Australian dollar as the chances the RBA cuts interest rates continue to firm.”

Wall Street rebound

US markets were boosted by better-than-expected quarterly results from retail giant Walmart and tech company Cisco Systems.

The Dow Jones index closed 215 points higher, up 0.8 per cent to 25,863.

The broader S&P 500 rose 0.9 per cent to 2,876, while the tech-heavy Nasdaq jumped 1 per cent.

Wall Street was also boosted by surprisingly strong economic data overnight.


Read More Here...

Bookmark the permalink.