Forex - US dollar mixed in Sydney morning trade after heavy overnight losses |
|
|
|
Published
:
Fri, 26 Oct 2007 01:38
|
SYDNEY (Thomson Financial) - The US dollar was mixed against other major currencies in Sydney midmorning trade Friday, after posting heavy losses overnight as more disappointing US economic data and credit worries reinforced the argument for an aggressive interest rate cut next week.A surprise fall in US durable goods orders and a smaller-than-expected drop in jobless claims contributed to erratic trading on Wall Street and weighed heavily on the greenback.Also hurting the dollar were rumors that AIG, the world's largest insurer, could be facing massive write-downs, and record high crude oil prices which triggered a scaling-back in carry trades as investors lost their appetite for risk .'The combination of weak US data, rising expectations of aggressive Fed easing and a stable, albeit fragile, Wall Street is a perfect recipe for euro-US dollar and Australian dollar-US dollar strength,' said John Noonan, an analyst at Thomson IFR.At 10.05 am (0005 GMT), one US dollar was buying 114.12 yen, compared to 114.10 yen in late New York trade. The euro was at 1.4327 US dollars, up from 1.4320 US dollars overnight.Elsewhere, the Australian dollar surged to fresh 23-year highs against the US dollar overnight in anticipation of an interest rate hike in early November which will widen the Aussie's yield advantage against the greenback. The Aussie touched 90.91 US cents before settling around 90.90 US cents.Rising commodity prices and expectations of continuing strong economic growth in China are also helping the Australian dollar, said John Kyriakopoulos, head of currency strategy at National Australia Bank.'We note that the Australian dollar has been more closely correlated with Chinese rather than US growth in recent years,' said Kyriakopoulos, who has raised his mid-2008 forecast for the Australian dollar to 96 US cents from 92 US cents, assuming the Reserve Bank of Australia raises rates to 7 percent.Sydney 10.05 am (0005 GMT)US dollar114.12 yen1.1659 sfrEuro1.4327 usd163.475 yen1.6694 sfr0.6985 stgSterling2.0519 usd234.178 yen2.39189 sfrAustralian dollar0.9083 usd0.4427 stg103.67 yenNew Zealand dollar0.7618 usdallison.jackson@thomson.combhx/jmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
Print this Story
Forex - US dollar mixed vs major currencies after volatile trading overnight 