Tuesday, 3 July 2012

Dollar hits two-month high on retail data

  • From:AAP 
  • July 04, 2012 2:56pm

  • THE dollar has hit a fresh two-month high after the release of better than expected retail trading figures.
    AT lunchtime the dollar was trading at US103.06c up from US102.64c yesterday..
    The currency earlier hit a two-month high of US103.21c.
    CMC Markets foreign exchange dealer Tim Waterer said the release of better than expectedretail trade figures this morning had provided a boost for the dollar.
    "It's been a real shot in the arm, the better than expected retail numbers has left the Aussie dollar travelling at (US) 103 cents," Mr Waterer said.
    Data released by the Australian Bureau of Statistics on Wednesday showed retail sales rose 0.5 per cent in May, compared to the previous month, above economists' expectations of a 0.2 per cent rise.
    Mr Waterer expects the dollar to remain strong heading into tomorrow, but said the July 4 public holiday in the US would reduce liquidity in the market and was likely to exaggerate currency movements.
    "It's looking strong and remains well supported as long as there is no negativity coming out of the Europe overnight."
    Meanwhile, Australian bond future prices were lower at noon.
    At 1200 AEST,, the September 10-year bond futures contract was trading at 96.875 (implying a yield of 3.125 per cent), down from 96.940 (3.060 per cent) on Tuesday.
    However, the September three-year bond futures contract was at 97.440 (2.560 per cent), down from 97.520 (2.480 per cent)