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$A nears three-month low

Reported by AAP
Thursday, February 7, 2013
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The Australian dollar has rebounded a quarter of a US cent after falling to its lowest level in almost three months as international markets reacted to weaker-than-expected domestic retail figures.

At 0700 AEDT on Thursday, the currency was trading at 103.21 US cents, down from 103.56 cents on Wednesday afternoon.

The Australian dollar moved as low as 102.98 US cents overnight on Wednesday - its lowest point since November 16.

Westpac New Zealand senior market strategist Imre Speizer said Wednesday's release of weaker-than-expected retail trade figures continued to weigh on the Australian dollar overnight.

Retail trade fell 0.2 per cent in December, Australian Bureau of Statistics said on Wednesday, which was below market expectations of a 0.3 per cent rise.

"The retail figures caused the Australian dollar to be sold off during the local session and that was extended during the London session," he said.

Mr Speizer said negative news out of Europe, including ratings agency Fitch's announcement it had cut the outlook on the Netherlands AAA credit rating to negative.

He said the key local driver for the currency would be the release of official domestic employment figures for January.

But Mr Speizer said the market reaction to the Australian figures could be complicated, or exacerbated, by the release of New Zealand employment figures at 0845 AEDT.

"If you get a major surprise in one and not in the other that could really distort things."

AAP

22/12/2014 06:23Sydney, Australia. 22 December,2014
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