Trade Resources Economy Buoyant Global Equities Boosted The Australian Dollar

Buoyant Global Equities Boosted The Australian Dollar

BUOYANT global equities boosted the Australian dollar today, with traders betting that European and US central banks will this week reaffirm commitment to easy money policies designed to boost asset prices and stoke growth.

Australia's S&P/ASX 200 tacked on gains of 1.3 per cent, while Asian stockmarkets were mostly higher too, tracking gains in US stocks after the S&P 500 settled at a record high of 1593.61.

Investor sentiment was boosted by the formation of a new government in Italy, easing worries of a fresh political crisis, and strong results in Australia from local lender ANZ Bank.

"The market has been hit by rays of blue sky today with interest rate cuts on the lips of traders both here in Australia and in Europe," said Tim Waterer, a senior trader at CMC Markets.

The Australian dollar was trading at $US1.0370 by late afternoon, well above the $US1.0306 level traded late yesterday. But for April the Aussie was on track for losses of around 0.6 per cent, unless it gains strongly in offshore trade overnight.

Source: http://www.theaustralian.com.au/business/markets/australian-dollar-lifts-as-rate-cut-hopes-rise/story-e6frg916-1226632533673
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Australian Dollar Lifts as Rate Cut Hopes Rise
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