Aust dollar closes closes flat on last day of 2008
By Ed Logue31 Dec 2008 5:31 PM
(EDS: Updates with Aust dollar local close)
SYDNEY, Dec 31 AAP - The Australian dollar closed flat in quiet trading on Wednesday, with end of year transactions rather than economic data directing currency movements.
At 1700 AEDT, the Australian dollar was trading at 62.22 US cents, up from Tuesday's close of 69.16 US cents.
During the day, the local unit moved between 68.82 US cents and 69.35 US cents.
Westpac Banking Corporation currency strategist Jonathan Cavenagh said the Australian dollar's movements were more about end-of-quarter and end-of-year transactions rather than economic data.
"People that have to do things at the end of the month, at the end of the quarter or at the end of the year have been doing that today," Mr Cavenagh said.
"That's what's I would suspect is really driving the currency movements."
Mr Cavenagh said trading volumes were thin on the last day of 2008.
"Liquidity remains pretty poor."
The local currency market closes at 1700 AEDT on Wednesday and will reopen on Friday, January 2.
At 1700 AEDT, the Australian dollar was at 62.52 Japanese yen, up from Tuesday's close of 62.35 yen, and at 49.18 euro cents, up from 49.06 euro cents.
The euro finished at 1.4079 US dollars, down from Tuesday's close of 1.4095 US dollars, and at 127.18 Japanese yen, up from 127.10 yen.
The US dollar was at 90.35 Japanese yen, up from 90.19 yen.
Meanwhile, the Australian bond market has closed firmer as more weak economic data in the US had investors seeking fixed-income assets in thin trading ahead of the start of 2009.
At 1230 AEDT, the yield on the Commonwealth Government March 2019 bond was at 3.983 per cent, down from Tuesday's close of 4.010 per cent, while the yield on the June 2011 bond was at 3.045 per cent, down from 3.145 per cent.
On the Sydney Futures Exchange, the March 10-year bond futures contract price was 96.005, up from Tuesday's close of 95.975, while the March three-year bond futures contract price was 96.720, up from 96.615.
The debt futures market closed at 1230 AEDT ahead of the New Year's Day public holiday, with trading to resume on Friday, January 2.
Commonwealth Bank fixed income strategist Jarrod Kerr said the local bond market had tracked US Treasuries, which rallied after poor housing and consumer data.
The Conference Board's consumer confidence index fell sharply in December, dropping 6.7 index points to 38 points.
US House prices fell 18 per cent in the 12 months to October, the largest decline since the survey started in 2000.
"The housing numbers we saw out of the US were particularly weak compared with previous years," he said.
Mr Kerr said the local market continued to be "very, very quiet" as 2009 approached.
"Not many people are willing to put too many positions on as we have seen over the last week," he said.
The 90-day bank bill rate closed at 4.300 per cent, up from Tuesday's close of 4.107 per cent, while the 180-day bank bill rate was at 3.703 per cent, down from 3.732 per cent.
At 1600 AEDT, the Reserve Bank of Australia's trade weighted index was at 55.6, up from Tuesday's close of 55.5.
AAP el/lk
(EDS: Updates with Aust dollar local close)
By Ed Logue
SYDNEY, Dec 31 AAP - The Australian dollar closed flat in quiet trading on Wednesday, with end of year transactions rather than economic data directing currency movements.
At 1700 AEDT, the Australian dollar was trading at 69.22 US cents, up from Tuesday's close of 69.16 US cents.
During the day, the local unit moved between 68.82 US cents and 69.35 US cents.
Westpac Banking Corporation currency strategist Jonathan Cavenagh said the Australian dollar's movements were more about end-of-quarter and end-of-year transactions rather than economic data.
"People that have to do things at the end of the month, at the end of the quarter or at the end of the year have been doing that today," Mr Cavenagh said.
"That's what's I would suspect is really driving the currency movements."
Mr Cavenagh said trading volumes were thin on the last day of 2008.
"Liquidity remains pretty poor."
The local currency market closes at 1700 AEDT on Wednesday and will reopen on Friday, January 2.
At 1700 AEDT, the Australian dollar was at 62.52 Japanese yen, up from Tuesday's close of 62.35 yen, and at 49.18 euro cents, up from 49.06 euro cents.
The euro finished at 1.4079 US dollars, down from Tuesday's close of 1.4095 US dollars, and at 127.18 Japanese yen, up from 127.10 yen.
The US dollar was at 90.35 Japanese yen, up from 90.19 yen.
Meanwhile, the Australian bond market has closed firmer as more weak economic data in the US had investors seeking fixed-income assets in thin trading ahead of the start of 2009.
At 1230 AEDT, the yield on the Commonwealth Government March 2019 bond was at 3.983 per cent, down from Tuesday's close of 4.010 per cent, while the yield on the June 2011 bond was at 3.045 per cent, down from 3.145 per cent.
On the Sydney Futures Exchange, the March 10-year bond futures contract price was 96.005, up from Tuesday's close of 95.975, while the March three-year bond futures contract price was 96.720, up from 96.615.
The debt futures market closed at 1230 AEDT ahead of the New Year's Day public holiday, with trading to resume on Friday, January 2.
Commonwealth Bank fixed income strategist Jarrod Kerr said the local bond market had tracked US Treasuries, which rallied after poor housing and consumer data.
The Conference Board's consumer confidence index fell sharply in December, dropping 6.7 index points to 38 points.
US House prices fell 18 per cent in the 12 months to October, the largest decline since the survey started in 2000.
"The housing numbers we saw out of the US were particularly weak compared with previous years," he said.
Mr Kerr said the local market continued to be "very, very quiet" as 2009 approached.
"Not many people are willing to put too many positions on as we have seen over the last week," he said.
The 90-day bank bill rate closed at 4.300 per cent, up from Tuesday's close of 4.107 per cent, while the 180-day bank bill rate was at 3.703 per cent, down from 3.732 per cent.
At 1600 AEDT, the Reserve Bank of Australia's trade weighted index was at 55.6, up from Tuesday's close of 55.5.
