Greece Woes Continue to Weigh on AUD
February 25th, 2010 Posted in Aussie - Kiwi
Australian business investment advanced 5.5% from the previous quarter, beating investors’ expectations of a 1.5% increase. The growth is another sign the economy continues to strengthen, intensifying investors’ expectations that the central bank will raise interest rates next week for the fourth time, to 4.0%. The spur in investment is fueled by rising Chinese demand for Australia’s iron ore, coal and gas, which in turn is fueling economic growth in the South Pacific nation.
However, despite the positive economic data coming from Australia, persistent uncertainty regarding Greece’s economic instability continues to weigh on higher yielding currencies, including the AUD. The Australian Dollar pared this month’s advance versus the USD after Standard & Poor’s said yesterday it may downgrade Greece’s credit rating by the end of March. A decline in Asian stocks and commodities also weight on the AUD in earlier trading.
Australia’s currency is currently trading at 89.01 U.S. cents from 89.37 cents yesterday in New York. It fell to 79.53 Yen from 80.56 Yen.
Start trading with Natalie R. now:
Tags: AUD forecast, AUD trading, AUD/USD, AUD/USD trading, australia interest rates, Australian Dollar
