FOREIGN EXCHANGE RATES – AUSTRALIA

$A plunges as investors bet on rate cut in March

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Original article by Misa Han
The Australian Financial Review – Page: 23 : 13-Feb-15

The Australian dollar was buying $US0.7646 late in trading on 12 February 2015. The currency was sold down in response to data showing that Australia’s unemployment rate rose to 6.4 per cent in January, with the economy shedding more than 12,000 jobs during the month. The jobs data has heightened expectations of further easing of monetary policy, and Paul Bloxham of HSBC expects the currency to continue to retreat

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Australian dollar set to drop to US75c by March

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Original article by Misa Han
The Australian Financial Review – Page: 31 : 12-Feb-15

The Australian dollar remained within a narrow trading range of $US0.7764 and $US0.7794 on 11 February 2015. The upcoming release of the latest unemployment data will be the next key test for the currency, while Reserve Bank governor Glenn Stevens will shortly front a parliamentary committee. Westpac’s Sean Callow forecasts that the currency will fall to $US0.75 by the end of March, while National Australia Bank expects it to test the $US0.76 level

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BUREAU OF STATISTICS, UNITED STATES. HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES

Dollar to stay below US80c at year end

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 22 : 30-Jan-15

The Australian dollar was fetching $US0.7858 late in trading on 29 January 2015, after peaking at $US0.8022 on the previous day. Gavin Friend of National Australia Bank expects the currency to be trading at the $US0.78 level at the end of 2015, while Richard Grace of the Commonwealth Bank has a more bearish year-end forecast of $US0.76. There is growing expectation that the Reserve Bank will reduce the cash rate on 3 February

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, SWISS NATIONAL BANK, FOREX.COM, UNITED STATES. FEDERAL RESERVE BOARD, CENTREBET INTERNATIONAL LIMITED, WESTERN UNITED LIMITED, COMMONWEALTH SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Aussie’s tumble may slow RBA cuts

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Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 6 : 27-Jan-15

The Australian dollar reached a low of $US0.7855 on 26 January 2015, and it has lost more than four per cent of its value in just over a week. The currency’s recent decline could prompt the Reserve Bank to leave the cash rate on hold in the near-term. Central bank governor Glenn Stevens recently suggested that a fall to around the $US0.75 level would be desirable. The upcoming release of inflation data is likely to influence monetary policy

CORPORATES
RESERVE BANK OF AUSTRALIA, TD SECURITIES, UNITED STATES. FEDERAL RESERVE BOARD

Rouble rout sends Aussie on the slide

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 10 : 18-Dec-14

The Australian dollar reached an intra-day low of $US0.8166 on 17 December 2014. The bearish sentiment toward the commodity currency was prompted by the continued selldown of Russia’s rouble, which has shed about 15 per cent in recent days. The Australian dollar’s continued weakness may be welcomed by the Reserve Bank, which have been talking down the currency for some time. However, Stephen Halmarick of Colonial First State Global Asset Management says this could mean that interest rate cuts in 2015 may not be necessary

CORPORATES
RESERVE BANK OF AUSTRALIA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF NEW ZEALAND, STANDARD AND POOR’S ASX 200 INDEX, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, OOH!MEDIA LIMITED – ASX OML, LATAM AUTOS LIMITED – ASX LAA, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

Stevens calls for US75c dollar

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Original article by Jacob Greber, Michael Stutchbury
The Australian Financial Review – Page: 1 & 10 : 12-Dec-14

The Australian dollar is currently trading at around $US0.83, but Reserve Bank governor Glenn Stevens believes that it needs to fall further. He argues that a more appropriate level for the currency would be about $US0.75, arguing that the decline in Australia’s terms of trade means the dollar needs to be lower. Stevens also says that the need for stability is a major reason why interest rates were kept on hold during 2014, and stresses that any further easing of monetary policy would need to has a positive effect on business and consumer confidence

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

US80c to the dollar is ‘fair value’ for RBA

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 23 : 5-Dec-14

The Australian dollar reached a new 4.5-year low of $US0.8389 on 4 December 2014. Economists are divided regarding what constitutes fair value for the currency. Michael Workman of the Commonwealth Bank believes that a range of $US0.80 to $US0.85 is appropriate for the dollar at present. However, Bank of America Merrill Lynch’s Saul Eslake suggests that fair value would be below $US0.80

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ST GEORGE BANK LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE GROUP LIMITED – ASX MQG, TD SECURITIES, UNITED STATES. FEDERAL RESERVE BOARD

RBA changes tune, opens door to interest rate cuts if $A stays high

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 3-Dec-14

The Australian dollar rose to $US0.8524 on 2 December 2014, after the Reserve Bank adopted a dovish position on monetary policy. The central bank has had a bias toward raising interest rates for some time, but governor Glenn Stevens has signalled that the cash rate could be cut again in 2015 if the dollar remains high. The Reserve Bank left the cash rate on hold at its final meeting for 2014

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, UNITED STATES. FEDERAL RESERVE BOARD, BARCLAYS BANK PLC, DEUTSCHE BANK AG, WESTPAC BANKING CORPORATION – ASX WBC

Aussie ‘will hit US76c’

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Original article by Anthony Macdonald
The Australian Financial Review – Page: 27 : 14-Nov-14

Geoffrey Kendick of Morgan Stanley is bearish about the outlook for the Australian dollar, forecasting that it will end 2014 at $US0.85. Kendrick expects the currency to be trading at just $US0.76 at the end of 2015. He also believes that there is the potential for global deflation, and he does not expect the Reserve Bank to increase official interest rates before its US counterpart does so

CORPORATES
MORGAN STANLEY AND COMPANY INCORPORATED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

‘Overvalued’ $A tipped to nosedive to US75c

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Original article by Bianca Hartge-Hazelman, Mark Mulligan
The Australian Financial Review – Page: 24 : 10-Nov-14

The Australian dollar is currently trading at around $US0.8623, but some economists are bearish about its outlook in 2015. David McDonald of Credit Suisse Private Banking suggests that a level of around $US0.75 may be closer to fair value for the currency in the longer-term. Meanwhile, AMP Capital’s Shane Oliver forecasts that the currency will fall to $US0.75 in 2015, while National Australia Bank expects it to fall to around $US0.80

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN BUREAU OF STATISTICS