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$A falls away from three-month high

Reported by AAP
Friday, February 3, 2012
Topics in this article:
Australian Dollar
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The Australian dollar is slightly lower, backing away from the three-month high reached on Thursday.

At 0700 AEDT on Friday, the Australian dollar was trading at 107.09 US cents, down from 107.17 cents on Thursday afternoon.

During the local session on Thursday, the Australian dollar went as high as 107.58 US cents after official data showed exports from Australia in December rose to 27.7 billion, the second highest level on record

Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar was sold off overnight after Thursday's big gain.

"It was really a night of consolidation for most of the major markets," Mr Speizer said from Auckland.

"Even out of foreign exchange it was a night of consolidation."

Mr Speizer said the Australian dollar continued to struggle to get past 107.65 US cents.

"It was always going to find it tough to break through. The reason for that is historical precedence," he said.

In early September 2011, the Australian dollar rose to a high of 107.64 US cents then fell away. In late October the currency made another big rally to 107.53 US cents but then backed off.

"It's had another go at it the last two nights and hasn't been able to break though that area," Mr Speizer said.

"If it did break above that area, that would be quite significant and would tell you it would be in for a good run higher, and it would look at getting close to the 110 US-cent area."

On July 27, 2011, the Australian dollar hit a peak of 110.81 US cents, its highest level since the currency was floated in December 1983.

Mr Speizer said he expected the currency market to be quiet ahead of Friday night's release of US non-farm payrolls data for January, the key measure of employment growth in the world's largest national economy.

He said he expected the currency on Friday to trade between 106.80 US cents and 107.47 cents, which was also the Thursday night range.

"The fact that you've got a major event tonight, the market will want to keep its powder dry until then," he said

28/11/2014 19:26Sydney, Australia. 28 November,2014
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