Bell FX Currency Outlook: The Australian Dollar has continued its recent appreciation, pushing into the high 1.0400's on Friday, as equity markets continue their firm tone while recently released Q1 corporate earnings are strong.
Hope springs from global markets and is seen cascading towards the Australian domestic markets with key commodities stocks gaining with the weaker US dollar. Analysts from IG Markets, Comsec and Morrison Securities share their views for this week.
MORNING REPORT
(6am AEST)The US economy grew at a 2.2pct annual pace in the first quarter of 2012, down from 3.0pct in December quarter 2011 and slightly below market forecasts centred on a gain of 2.5pct. But consumer sentiment rose to a 14-month high of 76.4 in April, up from 76.2 in March and above market forecasts.
Solid quarterly results from consumer-oriented stocks including Amazon.com sent stocks higher Friday, pushing benchmarks to their biggest weekly advance since mid-March. The Dow Jones Industrial Average added 23.69 points, or 0.18%, to 13228.31, and the Standard & Poor's 500-stock index advanced 3.38 points, or 0.24%, to 1403.36.
The Australian sharemarket ended a little lower today for the second time this week. The All Ordinaries Index (XAO) fell 0.3 pct or 11.6 pts to 4433.4 with almost all sectors losing ground. The market has remained largely unchanged over the shortened trading week (ANZAC Day public holiday on Wednesday).
New Zealand Finance Minister Bill English has become more stringent in managing Government's finances, saying preliminary Budget estimates in recent weeks had revealed a $1-billion worsening of the forecasts for 2014/15.
New Zealand Post is considering reducing its delivery services from six to three days a week and managing a lower staff count in response to an "irreversible" downturn in postal revenue.
A finance think tank agrees with the federal government that delivering a surplus next year would further boost the Australian economy, already heading into relative growth despite the lingering global difficulties.
Bell FX Currency Outlook: The Australian dollar followed US equities higher overnight after better than expected company earnings and US housing data pushed markets higher.
Investors shrugged off disappointing readings on the job market and euro-zone economic confidence, sending the Dow Jones Industrial Average more than 100 points higher for the third time this month.
The Australian sharemarket edged higher for the second time this week, with the All Ordinaries Index (XAO) ending 0.3 pct or 11.1 pts stronger to 4445.0. In the first 15 minutes of trade this morning, the market hit a high of 4466.2 (0.75 pct rise) only to gradually give back most of those gains throughout the session.
Rio Tinto and Chinalco's listed subsidiary, Chalco, have completed the formation of their joint venture (JV) to develop and operate the Simandou iron ore project in Guinea, following the completion of all Chinese regulatory approvals. As a result, a consortium led by Chalco has made an earn-in payment of US$1.35 billion, in line with an agreement reached with Rio Tinto in March 2010.
Prices of safe haven precious yellow metal gold may do a seesaw every once in a while, but there is no doubting that it will sustain a bull market with much higher prices in the years to come, primarily anchored and supported by the acquisition of central banks.
On Tuesday, afternoon before the Anzac Day public holiday, The Australian share market rose 3.6 points to 4,433 points. The Australian share market jumped on the back of the solid leads from the overseas markets over the last 2 days. US and European markets higher overnight, helped by positive earnings result from key European banks and consumer product companies and outstanding numbers from Apple and Boeing in the US.
The odds are building up against on-leave House Speaker Peter Slipper, with a key MP urging him to stay out of the picture at least until he clears his name while the Coalition may field a likely successor to his post.
Beleaguered Australian miner Lynas Corp., whose Lynas Advanced Materials Plant (LAMP) in Malaysia continues to be embroiled in a nasty game of domestic politicking and misinformed public, has been given a thumbs up for safety and low radiation emission no less than by a Malaysian radiology expert.
Claiming adherence to the rule of law, lawyers for Labor MP Craig Thomson asked the Australian Senate on Thursday to keep the Fair Work Australia (FWA) report on the alleged wrongdoings committed by Thomson while serving as top-ranking Health Services Union (HSU) official private.
Bell FX Currency Outlook: The AUD has rallied back towards USD1.0350 following last night's FOMC statement release.
Surging shares of Apple and dovish words from the Federal Reserve chairman drove U.S. stocks higher for a second day and propelled the Nasdaq Composite to its biggest gain this year. The Dow Jones Industrial Average advanced 89.16 points, or 0.69%, to 13090.72.
MORNING REPORT
(7am AEST)The Federal Reserve has kept the policy target range for the federal funds rate at zero to 0.25 basis points. The Fed said the economy has been expanding moderately but vowed to keep rates at exceptionally low rates to 2014. Fed chief Ben Bernanke said that ´´we think monetary policy is in the right place´´ but that ´´doesn´t mean we won´t take further action´´ to stimulate growth.
Australian Prime Minister Julia Gillard said on Wednesday that because of the values that Anzac Day represents, the day has become more significant than Australia Day.
Prime Minister Julia Gillard flatly denied accusations from the Coalition that she was making light of the sexual harassment accusations hurled against embattled House Speaker Peter Slipper.
The Australian sharemarket rose for the first time this week, with the All Ordinaries Index (XAO) edging higher by 0.1 pct or 3.6 pts to 4433.9. Yesterday was the second quietest day for the Aussie market however today was a little busier. The Australian and New Zealand markets will be closed tomorrow due to the ANZAC day holiday.
As many as 1,800 Ford workers could be forced to temporarily stand aside as the carmaker admitted on Tuesday that parts supply shortages will soon hit its Geelong production lines due to problems encountered by the company's main supplier, CMI.
The assets of former public servant Hohepa Morehu-Barlow will now be up for sale with the Queensland State Government after a Brisbane Supreme Court judge has completed the process of approval. Barlow, 36, originally from New Zealand, has lost all his properties to the Public Trustee of Queensland after he was formally charged with fraud in January. He was accused of plundering $16 million from Queensland Health.
Gold and copper mining firm Anglo Asian Mining PLC, after two years of exploration work, on Monday announced it has discovered gold at the Ordubad mine in Azerbaijan.
Singaporean Prime Minister Lee Hsien Loon committed in a dinner with Australian Prime Minister Julia Gillard to support Canberra's bid to gain a seat in the UN Security Council.
Royal Philips Electronics has started working on a technology that will significantly reduce its dependence on rare earth minerals for creating its light-emitting diode (LED) lighting products.
The Labor-led government appears to enjoy the 'confidence' of key Parliament members following the temporary exit of House Speaker Peter Slipper on Sunday amidst accusations of corruption and sexual misconduct.
The crucial inflation (CPI) numbers to be released on Tuesday will determine the monetary policy of the Reserve Bank, which analysts and investors are anticipating an undelying inflation rate within 2% could spell rate reductions. However, the RBA will consider the tension exerted by the budgetary allocations of the Federal government as well as the European recession fears.
