FOREIGN EXCHANGE RATES – AUSTRALIA

Dipping Australian dollar tipped to drop below US60c

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Original article by Vesna Poljak
The Australian Financial Review – Page: 28 : 21-Jul-15

Deltec International Group’s Atul Lele says further interest rate cuts and fiscal policy easing are needed in Australia due to the country’s uncertain economic outlook. He says the economic downturn in Canada is likely to be replicated in Australia, and forecasts that the Australian dollar will fall below the $US0.70 level by the end of 2015. He also warns of the potential for it to fall below $US0.60.

CORPORATES
DELTEC INTERNATIONAL GROUP, BANK OF CANADA

Canada, NZ moves point to more RBA rate cuts

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 & 8 : 17-Jul-15

The Australian dollar reached a low of $US0.7354 on 16 July 2015, after the Bank of Canada reduced its cash rate to 0.5 per cent. The Reserve Bank of New Zealand is widely tipped to ease monetary policy in July, and economists suggest that this may prompt further rate cuts in Australia before the end of the year. Citigroup anticipates a rate cut of 25 basis points in November, while Deutsche Bank forecasts that the Australian dollar will test the $US0.65 level by the end of 2016.

CORPORATES
RESERVE BANK OF AUSTRALIA, BANK OF CANADA, RESERVE BANK OF NEW ZEALAND, CITIGROUP PTY LTD, DEUTSCHE BANK AG, ROYAL BANK OF CANADA, UNITED STATES. FEDERAL RESERVE BOARD, UBS HOLDINGS PTY LTD

Stocks to watch as the $A drops

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Original article by Rose Powell
The Australian Financial Review – Page: 21 : 15-Jul-15

The Australian dollar has shed almost 10 per cent since mid-May 2015, and more than 20 per cent in the last year. Macquarie forecasts that a number of stocks will benefit from the recent downturn in the value of the currency, including CSL, Ramsay Health Care, Telstra and Brambles. On the other hand, stocks that are tipped to fall as a result of currency weakness include SEEK, Fortescue Metals Group, WorleyParsons and Rio Tinto.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CSL LIMITED – ASX CSL, RAMSAY HEALTH CARE LIMITED – ASX RHC, TELSTRA CORPORATION LIMITED – ASX TLS, BRAMBLES LIMITED – ASX BXB, SEEK LIMITED – ASX SEK, FORTESCUE METALS GROUP LIMITED – ASX FMG, WORLEYPARSONS LIMITED – ASX WOR, RIO TINTO LIMITED – ASX RIO, ALS LIMITED – ASX ALQ, TRANSPACIFIC INDUSTRIES GROUP LIMITED – ASX TPI, SIMS METAL MANAGEMENT LIMITED – ASX SGM, AMCOR LIMITED – ASX AMC, SONIC HEALTHCARE LIMITED – ASX SHL, COMPUTERSHARE LIMITED – ASX CPU, COCA-COLA AMATIL LIMITED – ASX CCL, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, BLUESCOPE STEEL LIMITED – ASX BSL, CHALLENGER LIMITED – ASX CGF, MACQUARIE WEALTH MANAGEMENT, MORGANS FINANCIAL LIMITED, JP MORGAN AUSTRALIA LIMITED

With US rates rising, UBS bets on a 70c dollar

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 8 : 13-Jul-15

The Australian dollar reached a low of $US0.7372 in the week ended 10 July 2015. UBS Wealth Management expects it to test the $US0.70 level by the end of 2015, with global currency strategist Katherine Klingensmith citing factors such as the slowing Australian economy, the prospect of rate rises in the US and the downturn in commodity prices. BK Asset Management’s Kathy Lien adds that further interest rate cuts are likely in Australia, which would add to bearish sentiment toward the currency.

CORPORATES
UBS WEALTH MANAGEMENT, BK ASSET MANAGEMENT, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF ENGLAND, DELTEC INTERNATIONAL GROUP

Aussie’s downward direction continues

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Original article by Mark Mulligan
The Australian Financial Review – Page: 30 : 9-Jul-15

The Australian dollar was buying $US0.7411 late in trading on 8 July 2015, after falling to $US0.7398 in overnight trading. Factors such as the debt crisis in Greece and the Chinese sharemarket’s downturn have prompted renewed support for so-called "safe haven" currencies. This has been at the expense of commodity currencies such as the Australian, New Zealand and Canadian dollars.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, BK ASSET MANAGEMENT

Australian dollar dips below US75c for first time since 2009

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Original article by Mark Mulligan
The Australian Financial Review – Page: 24 : 7-Jul-15

There was renewed support for "safe-haven" currencies on 6 July 2015, in response to the outcome of the referendum in Greece. The Australian dollar reached an intra-day low of $US0.7453 before rising to $US0.7504 late in trading. The debt crisis in Greece also weighed on the euro, which reached a low of $US1.09 early in Asian trading. National Australia Bank’s Ray Attrill says the euro and the Australian dollar could come under further downward pressure.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK, INTERNATIONAL MONETARY FUND, GREECE. MINISTRY OF FINANCE, BARCLAYS BANK PLC

All eyes on Greece as markets await result

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Original article by Rose Powell
The Australian Financial Review – Page: 22 : 6-Jul-15

Australia’s benchmark S&P/ASX200 Index shed 0.14 per cent in the week ended 3 July 2015. The debt crisis in Greece and the country’s referendum referendum are likely to be the key issue for investors when trading resumes on 6 July. Meanwhile, Stephen Walters of JP Morgan expects the Reserve Bank to leave the cash rate unchanged on 7 July, while Rob Rennie of Westpac forecasts that the Australian dollar will fall below $US0.75 in the near-term.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

Grexit fears wipe $38b from ASX

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Original article by Vesna Poljak, Lisa Murray
The Australian Financial Review – Page: 1 & 8 : 30-Jun-15

The Australian dollar and the domestic sharemarket were sold down on 29 June 2015, as Greece’s debt crisis deepened and Chinese shares fell. The benchmark S&P/ASX 200 was down 123 points or 2.2 per cent at 5,422.5, while the dollar fell to $US0.7643. Kapstream Capital’s Kumar Palghat says investors can expect more volatility in financial markets, while federal Treasurer Joe Hockey says there will be minimal impact on Australia if Greece leaves the eurozone.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, KAPSTREAM CAPITAL PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, GREECE. OFFICE OF THE PRIME MINISTER, INTERNATIONAL MONETARY FUND, ASIAN INFRASTRUCTURE INVESTMENT BANK, RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, SHANGHAI COMPOSITE INDEX, CHINEXT COMPOSITE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, PM CAPITAL LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. DEPT OF THE TREASURY, EUROPEAN CENTRAL BANK, AQUASIA PTY LTD

Want to know where the $A is going? Here’s where to look

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Original article by Philip Baker
The Australian Financial Review – Page: 24 : 15-May-15

The Australian dollar was trading at around $US0.81 on 14 May 2015, and US economic data is likely to be a major influence on its outlook in the near-term. Most of the recent data suggests that US economic growth remains subdued, and the timing of the first interest rate rise in six years will depend on the state of the economy. BetaShares CEO David Bassanese believes that US economic data will improve, which would most likely result in a rate rise in either June or September.

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD LIFE PLC, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Aussie tipped to tread water until US lifts rates

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Original article by Rose Powell
The Australian Financial Review – Page: 29 : 12-May-15

The Australian dollar was buying $US0.7893 late in trading on 11 May 2015. The currency was not unduly affected by an interest rate cut in China, while Westpac’s Robert Rennie expects it to trade at around the $US0.78 level for some time. He forecasts that it will fall to around $US0.73 by late September, while Thomas Averill of Rochford Capital does not expect further monetary policy easing in Australia.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ROCHFORD CAPITAL PTY LTD, RESERVE BANK OF AUSTRALIA, SOCIETE GENERALE SA