Financial Planner Melbourne | Insurance Broker Melbourne | Superannuation Specialist Melbourne

Financial Planner Melbourne | Insurance Broker Melbourne | Superannuation Specialist Melbourne
Life Insurance Australia | What is superannuation | Insurance for Income | How to invest | How to minimise tax | Income Protection Australia | Superannuation in Australia

“Rashesh Bhavsar and Fortune Wealth Creation Group are authorised representatives of Synchron AFS Licence No 243313”

The following material is of a general nature only and does not take your personal circumstances into account. You should seek financial advice before making any investment or financial decisions.

Tuesday, March 25, 2014

Australian Dollar hits 2014 high


The Australian dollar has reached a high for the year, buoyed by expectations of no more interest rate cuts in Australia and hopes Chinese authorities will move to stimulate the economy.
The dollar touched 91.58 US cents in the morning and is hovering near that level, despite a private survey suggesting growth in China's manufacturing sector had slowed to an eight-month low.
Traders are hoping this latest soft data could prompt China's government to take more steps to support growth in the world's second-biggest economy.
They were also awaiting a speech by Reserve Bank deputy governor Philip Lowe, after which he was asked if the dollar was "uncomfortably high" as it continues to hold above 90 US cents.
Dr Lowe said the dollar had declined and this was playing an important role in stabilising the economy.
It was the first of several public appearances by top RBA officials this week, where they would be offered the chance to talk the dollar down.
Westpac senior currency strategist Sean Callow says there are mixed indications from Chinese media as to how likely it is that China's government will introduce more stimulus measures.
"While the first quarter growth number in China's probably going to be a little bit slower, they do have lots of ammunition to make sure that growth doesn't slow down too far," Mr Callow said.
"So it may be a case of looser monetary policy, but perhaps more likely fiscal policy, where there is plenty of spending on infrastructure that is already planned in China in their five-year plan and could be brought forward."
Mr Callow says the currency has been supported by some recent strong domestic data on economic growth, employment and building approvals.
The good news has added to expectations that domestic interest rates will remain on hold, with the Reserve Bank repeatedly stating that "a period of stability" for rates is likely.
Reference: http://www.abc.net.au

No comments:

Post a Comment