Currency Markets News

In currency markets, the safe-haven yen found itself temporarily out of favour as the dollar moved up to 118.30 yen from an early 117.61.

The Australian dollar, often used as a liquid proxy for the yuan, rallied over half a U.S. cent at $0.7026, while the euro slipped to $1.0827 from $1.0860.

The dollar rose 0.2 percent against a basket of currencies to 99.156, approaching resistance around the 100 barrier.

Likewise, low-risk sovereign bonds had to surrender a little of their recent gains and yields on 10-year debt nudged up 4 basis points 2.138 percent.

The hint of firmer demand from China provided a reprieve for commodity prices, which have been under the hammer for months.

U.S. crude edged up 40 cents to $30.84 a barrel, a day after breaching the $30 barrier for the first time in 12 years.

Benchmark Brent was quoted 26 cents higher at $31.12 a barrel. U.S. crude had fallen 17 percent in just seven sessions, a gift to consumers across the globe but also a strong force for disinflation.

Australian market set to open higher

THE Australian market looks set to open higher, following gains of around one per cent on Wall Street. At 0649 AEDT on Thursday, the March share price index futures contract was up 64 points at 5,162.

US stocks are higher for a third consecutive session, led by strength in energy stocks, as a bounce in oil prices boosts confidence ahead of the Christmas holiday.

In Australia, the market on Wednesday closed higher for the sixth straight session, following a stabilisation in commodity prices.

The benchmark S&P/ASX200 index was up 25.1 points, or 0.49 per cent, at 5,141.8 points.

The broader All Ordinaries index was up 25.8 points, or 0.5 per cent, at 5,193.5 points.

Australian dollar falls below 71 US cents

One Australian dollar buys

* 70.92 US cents, from 71.14 cents on Monday

* 87.42 Japanese yen, from 87.08 yen

* 66.42 euro cents, from 66.33 euro cents

* 109.19 New Zealand cents, from 108.86 NZ cents

* 46.67 British pence, from 46.76 pence

Dollar consolidates after recent rally, Aussie flies on robust jobs data

The dollar was down against the euro and yen on Thursday as the currency consolidated after a recent rally, while the Australian dollar soared on surprisingly strong local jobs data.

The dollar index .DXY dipped 0.2 percent to 98.827, drifting down from a 7-month peak of 99.504 set on Tuesday. The greenback was at 122.88 yen JPY=, off a 2-1/2 month high of 123.60 set earlier in the week.

The euro was up 0.2 percent at $1.0763 EUR=, having gone as low as $1.0674 this week - a level seen in late April. It was up 0.3 percent versus the yen at 132.25 EURJPY=R, pulling away from Friday's six-month trough of 131.45.

The biggest mover in Asia was the Aussie, which was last up 1.2 percent at $0.7144AUD=D4 after Australian employment came in at 58,600 new jobs in October versus forecasts of a modest increase of 15,000. ECONAU

The strong jobs report boosted the Aussie by reducing expectations of a near-term interest rate cut by the Reserve Bank of Australia, although analysts saw the currency remaining under pressure in the longer run.

"The rise by the Australian dollar is likely to be temporary, because the surrounding structural conditions remain unchanged. China is facing an economic slowdown and the Australian economy is also in the process of rebalancing," said Shinichiro Kadota, chief Japan FX strategist at Barclays in Tokyo.

The Australian dollar is often used as a liquid proxy for China-related trades. It has declined steadily after hitting a 2-month peak of $0.7382 in mid-October, stooping to a 1-month low of $0.7016 earlier this week.

Australian Stock Market News - Australia's Central Bank

Dollar treads water, Aussie edges up after RBA stands pat

The dollar, euro and yen treaded water on Tuesday in Asia, as the market was quiet with Tokyo on holiday and traders awaiting direction after the latest readings on global manufacturing activity failed to show clear economic trends.

In Asia, the Australian dollar was the biggest mover in an otherwise sedate session, rising after the Reserve Bank of Australia (RBA) left interest rates unchanged.

Australia's central bank kept its cash rate steady at a record low of 2.0 percent on Tuesday as widely expected, but said low inflation offered scope to ease further if needed.

While the question still appeared to be when and not if the RBA could cut rates in the near future, commentators suggested that the Aussie moved more on factors other than monetary policy.

"The recent track record suggests policy expectations have not been the dominant driver," wrote Todd Elmer, head of Citi's G10 strategy in Singapore. "AUD has actually gained as interest rate expectations have declined sharply, at least partly reflecting gains on the basis of rising risk appetite."

The Aussie was up 0.8 percent at $0.7200 AUD=D4. It touched a 6-1/2-year low of $0.6892 early in September when risk appetite globally was at a low ebb amid China worries. But the currency rebounded to as high as $0.7382 in mid-October as appetites improved.

The dollar index .DXY was barely changed at 96.907 after drifting between 96.635 and 96.965 all of Monday. The euro EUR= was hemmed in a tight $1.1000 to $1.1053 range and last stood at $1.1012.

Against the yen, the greenback was equally restrained, trading nearly flat at 120.73 JPY=, while the euro was steady at 133.94 yen EURJPY=R.

Australian Stock Market News - US Federal Reserve

Dollar nosedives as Fed leaves rates on hold

THE Australian dollar has broken below 71 US cents after the US Federal Reserve kept its near-zero benchmark interest rate unchanged.

At 0630 AEDT on Thursday, the currency was trading at 71 US cents, down from 71.20 cents on Wednesday.

While leaving policy steady on Thursday morning (AEDT), the central bank hinted it could begin raising US interest rates as early as December.

The Aussie slumped to 70.80 US cents with the news, from 71.59 earlier.

CURRENCY SNAPSHOT AT 0630 AEDT ON THURSDAY

One Australian dollar buys:

* 71.00 US cents, from 71.20 cents on Wednesday

* 86.03 Japanese yen, from 85.72 yen

* 65.02 euro cents, from 64.53 euro cents

Dollar up on strong ECB easing signal

The Australian dollar has climbed slightly higher after the European Central Bank kept interest rates on hold and flagged its readiness to step up its stimulus program.

The Aussie had a spike overnight.

At 0700 AEDT on Friday, the currency was trading at 72.13 US cents, up from 71.96 cents on Thursday.

ANZ senior FX manager Sam Tuck said the Aussie had an initial spike overnight after the ECB indicated further stimulus could be on the table at its next meeting, in December.

“But one of the key considerations for the ECB was global growth concerns, especially the risks emanating from emerging markets,” he said.

This dovetails with the US Federal Reserve’s message from September, that central banks are considering either delaying lift-off or increasing stimulus to protect their economies from risks in Asian economies, Mr Tuck said.

“It’s a developed market and a source of safety for cash but it’s also highly exposed to emerging markets.”

Australian Stock Market News - Dollar has dropped

Dollar down on Chinese share market pain

The benchmark Shanghai Composite Index slumped 3.06 per cent

THE Australian dollar has dropped, following Chinese equities down.

At 0630 AEDT on Thursday, the currency was trading at 72.13 US cents, down from 72.50 cents on Wednesday.

The benchmark Shanghai Composite Index slumped 3.06 per cent on Wednesday, after rising strongly in recent weeks in a recovery from a rout over the summer.

CURRENCY SNAPSHOT AT 0630 AEDT ON THURSDAY

One Australian dollar buys:

* 72.13 US cents, from 72.50 cents on Wednesday

* 86.53 Japanese yen, from 86.98 yen

* 63.61 euro cents, from 63.87 euro cents