BUSINESS

With the AUD trading just bellow USD0.9000 for the majority of yesterday's local trading session, the AUD has fallen about a cent overnight as concerns over the US economy resurfaced after a very short term period of renewed confidence.

US consumer spending rose by 0.4pct in July - marking the strongest reading in four months. US personal income rose by 0.2 pct in July after edging up 0.1pct in June.

U.S. stocks fell Monday despite deal activity from Intel and 3M as investors continued to fret about the health of the economy. The drop came in thin trading.

The Australian Dollar moved above US90 cents for the first time in over a week as sentiment was buoyed by recent comments from the US Federal Reserve that it is prepared to take steps to safeguard the world's largest economy from falling back into recession.

Employment opportunities would abound in the resources sector in about 5 years.

Working conditions in Australia remain marked by biases.

The dollar closed slightly higher even after a downward trend throughout the trading day.

British-Australian miner Rio Tinto (ASX:RIO) announced on Monday it will invest US$1.6 billion to develop the Hope Downs 4 iron ore project in Western Australia and link with Rio Tinto's existing rail, power and port infrastructure in the Pilbara.

The Australian currency managed to finish almost one US cent higher even after a steady fall throughout the trading day as the Bank of Japan took measures to bolster liquidity in an emergency meeting.

The Australian bourse rallied on Monday, posting a record increase this month, as the investment community took heart from reassurances by US Federal Reserve chairman Ben Bernanke that the central bank would provide more stimuli to the US economy if necessary.

Australian prospectors are searching old mines for more gold as bullion prices increase, pushing production to its record high in more than six years, according to consultant Surbiton Associates.

Gold showed to be steady as it began its fifth straight week in positive territory before the release of mixed US economic data.

The Australian Institute of Petroleum (AIP) announced on Monday that the national average price of petrol fuel slipped by 124 cents each litre last week, which it said was the biggest drop from the past six months.

Caltex Australia (ASX:CTX) has announced today it intends to continue a major expansion of its fuel terminal at Port Hedland in Western Australia in a move set to increase supply capability to the resource-intensive state's diesel market.

Building materials specialist James Hardie Industries SE announced on Monday that it would enter trading halt from 1400 AEST on September 1 pending the Federal Court decision on its appeal against a tax assessment that runs to more than $US330.4 million or $A366.62 million.

The six percent increase in electricity costs is not the last for the year.

Global rural lender Rabobank Group said on Monday that business confidence among Australian farmers soared to a record level in August as commodity prices saw marked improvement with farm outlook further buoyed by the arrival of winter rains in most states.

The number of new houses sold from May to July is 2 percent lower than the figures for the same period last year.

Australia's economy is expected to show an upward trend because companies earned well in the second quarter.

The Australian stock market was surging ahead at Monday noon, with banks and mining stocks following a strong lead from Wall Street.

The local market welcomed what Ben Bernanke, chairman of the US Federal Reserve, said over the weekend that he will do whatever it takes to boost the US economy. His statement proved to be the positive impetus for Wall Street, which rallied strongly on the weekend.

Giant oil firm Caltex Australia Ltd (ASX: CTX) announced on Monday that it is tapping Transfield Services Ltd (ASX: TSE) for expansion works on the company’s fuel depot at Port Hedland in Western Australia.

The Australian Nursing and Midwifery Federation (ANMF) is anxious over the South Australian government's stance on their recent enterprise bargaining action (EBA).

The $37 million sexual harassment suit against David Jones and its former chief executive Mark McInnes has commenced its hearing sessions in a Sydney Federal Court as similar complaints from other employees may be added to the case, according to a lead prosecuting lawyer.

Potential borrowers face an increase of 1.5 percentage points in the cost of bank loans.

The Public Transport Authority (PTA) reassured commuters early today that trains will come in as scheduled. David Hynes, spokesperson for the PTA, said Friday's incident will not be repeated.

The Australian Dollar surged following comments from Federal Reserve Chairman Governor Bernanke in a keynote speech to global central bankers lifted market sentiment on Friday night.

The US economy grew at a 1.6pct annual pace in the June quarter, down from the original estimate of 2.4pct. Economists had tipped a result near 1.3pct. US consumer sentiment rose from 67.8 to 68.9 in August, short of forecasts near 69.6.

U.S. stocks climbed Friday, with DuPont, Alcoa and Caterpillar leading broad gains. Investors took comfort in Federal Reserve Chairman Ben Bernanke's promise to do what it takes to support an economic recovery, along with a better than feared revision of second quarter economic growth.