Currency news - Growth fears stifle Australian dollar

Growth fears stifle Australian dollar - 13-02-08

The Australian dollar was unable to make a challenge on the 0.91 level against the US dollar on Tuesday and drifted slightly weaker in US trading. This trend continued in local trading on Wednesday with a retreat towards 0.9020.

Domestically, there was a decline in consumer confidence, maintaining the trend of weaker forward-looking indicators. Nevertheless, the Australian dollar yield support will remain strong which will provide important support, especially if there is a robust employment report.

The international risk factors will continue to be a key influence and fears over a more debilitating downturn in global growth will limit Australian dollar buying support. Overall, the currency is likely to face further selling pressure above the 0.90 level and weakened to 0.8970 in European trading as caution prevailed.

Tim Clayton
Investica Ltd
E-mail: tim.clayton@investica.co.uk
+44 (0) 1452 781001

Full list of daily currency analysis

This analysis report is intended for distribution to ACM Advanced Currency Markets SA private, corporate customers and members. Information contained in this report is based on data obtained from sources considered to be reliable, however, no guarantees be made by ACM Advanced Currency Markets SA as to the accuracy, timeliness and completeness of the data. The opinions and forecasts contained herein are subject to change without notice and ACM Advanced Currency Markets SA accepts no liability for any losses, damages and/or expenses incurred arising from or in any way connected with the utilisation of all or part of this report. This report is meant for information purposes and is not intended to be and should not be construed as an offer or solicitation to buy, sell foreign exchange or indeed any other financial instruments. This report, or any part of it may not be reproduced or distributed without the prior consent of ACM Advanced Currency Markets SA.