Aust dollar lower at noon, bonds stronger
15 Jan 2009 12:36 PM
SYDNEY, Jan 15 AAP - The Australian dollar was lower at noon despite a slight boost from a better-than-expected December jobs report.
At 1200 AEDT, the Australian dollar was trading at $US0.6593/97, down from Wednesday's close of $US0.6799/03.
During the morning, the local currency moved between $US0.6582 and $US0.6657.
The Australian dollar reacted positively to the news that Australia's unemployment rate was a seasonally adjusted 4.5 per cent in December, up from 4.4 per cent in November.
The economy lost 1,200 jobs in December, with full-time employment falling by 43,900 but part-time employment rising by 42,800, according to the Australian Bureau of Statistics.
Economists had expected total employment to decline by 20,000 and a jobless rate of 4.5 per cent.
The local currency rose from $US0.6598 shortly before the data was released at 1130 AEDT to $US0.6624 shortly afterwards.
However, the move was not sustained as the unit drifted back below $US0.6600 by 1200 AEDT.
Commonwealth Bank of Australia currency strategist Joseph Capurso said the lift in sentiment was only short-lived.
"The implication for the Aussie is that the unemployment rate is going up, the Reserve Bank's cash rate is going down and the economy is slowing," Mr Capurso said.
"Those sorts of influences are going to push the Aussie down over the next several months."
The Australian dollar shed two US cents during offshore trading, as weak US retail sales figures and falling commodity prices dampened appetite for the high-yielding currency.
Mr Capurso said offshore developments were having a much bigger influence on the Australian dollar than local events, with the unit expected to remain under pressure due to the global economic downturn.
"We can see the overseas economic data getting worse, it already is bad but we can see it getting worse," Mr Capurso said.
"There's a pretty good chance that the Aussie is going to fall under 60 US cents some time over the next few months."
CURRENCY TABLE: Currency snapshot at 1200 AEDT
CURRENCY SPOT PREVIOUS CLOSE
AUD/USD 0.6593-97 0.6799-03
AUD/JPY 58.79-84 61.04-10
AUD/EUR 0.5008-18 0.5111-19
AUD/NZD 1.2253-73 1.2163-73
AUD/GBP 0.4525-35 0.4655-62
EUR/USD 1.3173-77 1.3295-97
USD/JPY 89.17-20 89.77-79
EUR/JPY 117.46-49 119.37-39
(*Closes taken at 1700 AEDT Previous local session)
At 1200 AEDT, the Reserve Bank of Australia's trade weighted index was at 54.0, down from Wednesday's close of 54.9.
Meanwhile, the Australian bond market was stronger at noon.
At 1200 AEDT, the yield on the Commonwealth Government March 2019 bond was at 3.890 per cent, down from Wednesday's close of 3.990 per cent, while the yield on the April 2012 bond was at 3.025 per cent, down from 3.160 per cent.
On the Sydney Futures Exchange, the March 10-year bond futures contract price was 96.105, up from Wednesday's close of 96.000, while the March three-year bond futures contract price was at 96.975, up from 96.845.
SECURITY YIELD PREVIOUS CLOSE
CGS 5.25 pct Mar 2019 3.890 3.990
CGS 5.75 pct Apr 2012 3.025 3.160
90-day bank bill rate 3.918 3.903
180-day bank bill rate 3.445 3.550
Sydney Futures Exchange
CONTRACT PRICE PREVIOUS CLOSE
Mar 2009 10-yr bond futures 96.105 96.000
Mar 2009 3-yr bond futures 96.975 96.845
Mar 2009 bill futures 96.970 96.930
Jun 2009 bill futures 97.340 97.260
