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$A up on global currency moves, US data

Reported by AAP
Tuesday, October 16, 2012
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The Australian dollar is higher on global currency moves and strong US data.

At 1200 AEDT on Tuesday, the currency was trading at 102.63 US cents, up from 102.23 US cents.

RBC currency strategist Michael Turner said the Australian dollar had followed other currencies higher overnight.

"The euro was very well supported overnight," he said.

"The story overnight was that Spain was coming very close to asking for a bailout, so there was appetite for the US dollar, and the Aussie dollar followed on the back of that."

The release of US retail sales data - which showed a rise of 1.1 per cent in September, following a lift of 1.2 per cent in August - had also added to the positive sentiment.

Mr Turner said the release of minutes from the Reserve Bank of Australia's (RBA) October meeting would be the key local event for the day.

"The market will just be digesting the RBA's comments," he said.

"They don't look super-dovish, so I think the Aussie's going to be able to keep its highs as it heads into the London session."

The RBA minutes - which were released at 1130 AEDT on Tuesday - named weak commodity prices and a softened global economy as reasons for the bank's decision to cut the cash rate by a quarter of a per cent (to 3.25 per cent) at its October 2 meeting.

Meanwhile, Australian bond futures prices were almost unchanged at noon.

At 1200 AEDT on Tuesday, the December 10-year bond futures contract was trading at 97.075 (implying a yield of 2.925 per cent), the same position as Monday's close.

The three-year bond futures contract was at 97.650 (2.350 per cent), slightly down from 97.660 (2.340 per cent).

27/11/2014 02:00Sydney, Australia. 27 November,2014
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