FOREIGN EXCHANGE RATES – AUSTRALIA

Reserve Bank keeps interest rate mantra

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 5-Nov-14

The Australian dollar late in the trading on 4 November 2014 rose to $US0.8724 from $US0.8694, following news that the Reserve Bank of Australia was leaving the official cash interest rate unchanged. The board meeting earlier in the day resulted in the 14th consecutive non-adjustment of the 2.5% rate, and the central bank has signalled that this will remain the case until close to mid-2015. The high foreign exchange rate is a major reason, although there are concerns that the low cost of home mortgage borrowing is creating a residential real estate prices bubble. Inflation is benign but the terms of trade are worsening

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BUREAU OF STATISTICS

Aussie dollar under threat as US Fed talks rate rise

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 36 : 19-Sep-14

The US Federal Open Market Committee has signalled that interest rates are likely to rise by the end of 2015. This prompted renewed support for the US dollar on 18 September 2014, while the yield on US 10-year bonds increased to 2.61 per cent and the Australian dollar reached a six-month low of $US0.8938. The Australian dollar is likely to come under further selling pressure when the US does begin tightening monetary policy

CORPORATES
UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, DELTEC INTERNATIONAL GROUP, GROUP OF TWENTY (G-20), RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, BANK OF ENGLAND, FINANCIAL STABILITY BOARD, INTERNATIONAL MONETARY FUND, TRILOGY GLOBAL ADVISORS LLC, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, BANK OF JAPAN, EUROPEAN CENTRAL BANK, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CNBC, PNC ASSET MANAGEMENT, BOSTON ADVISORS LLC

Drop in dollar helps, but don’t bet on its slide

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Original article by Adam Creighton
The Australian – Page: 18 : 16-Sep-14

Economists do not expect the Australian dollar to fall much further. The currency has remained high since the global financial crisis. However, it dropped below $US0.90 in mid-September 2014. The fall in the price of iron ore will reduce Federal Government revenues, but the lower dollar will lift the US dollar earnings of Australian companies. Robert Rennie, of Westpac Banking, believes that the currency is close to "fair value" of about $US0.88

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. FEDERAL RESERVE BOARD

Lower $A ‘a wake-up call’

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Original article by Bianca Hartge-Hazelman, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 15-Sep-14

The Australian dollar was heavily sold down in the week ended 13 September 2014. The currency was trading at $US0.904, and Aitken Advisors’ James Aitken says it needs to fall much further in order to benefit the economy. He suggests that an appropriate level for the currency may be around $US0.80, while Warren Hogan of the ANZ Bank forecasts that it will fall to $US0.88 by the end of the year

CORPORATES
AITKEN ADVISORS LLP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, QIC LIMITED, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED

RBA’s Stevens talks down dollar, again

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1-Dec : 4-Jul-14

Reserve Bank of Australia governor Glenn Stevens has signalled his willingness to use interest rates to reduce the value of the Australian dollar, which he believes is excessive. His concerns about the negative impact of the high foreign exchange rate on the economy may result in another cut to interest rates. Stevens’s remarks promptly pushed the Australian dollar down to $US0.9362 on 3 July 2014

CORPORATES
RESERVE BANK OF AUSTRALIA, INTERNATIONAL MONETARY FUND, BANK FOR INTERNATIONAL SETTLEMENTS, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Australian rally on Fed statements could be short-lived

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Original article by Sally Rose
The Australian Financial Review – Page: 13 and 22 : 20-Jun-14

Australia’s S&P/ASX 200 rose by 1.6 per cent on 19 June 2014, and the All Ordinaries Index was up 1.5 per cent. The bullish sentiment was prompted by indications that US interest rates are set to remain at a historic low in the near-term. Meanwhile, the Australian dollar rose to $US0.9423 and the yield on 10-year government bonds fell by two per cent. George Clapham of Arnhem Investment Management cautions that economic data in China will remain the key influence on the Australian sharemarket

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ARNHEM INVESTMENT MANAGEMENT PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, WILSON HTM LIMITED, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK