Dollar falls in light trade
THE dollar was lower at noon after trading in a tight range in the morning session, with much of the market focussed on a fall in the New Zealand dollar.
At 1200 AEST the local currency was trading at $US0.7515/20, slightly down from yesterday's close of $US0.7543/48. During the morning session it reached a low of $US0.7505 and a high of $US0.7527.
St George head of foreign exchange Glen Whittingslow said dealing were very subdued with most of the focus on the New Zealand dollar.
The New Zealand dollar fell against the US dollar after comments by NZ finance minister Michael Cullen were interpreted as suggesting interest rates in the country would not rise any further.
Mr Whittingslow also said reports today that a passenger travelling from Vietnam to Sydney had a suspected case of bird flu could have given the local unit "a little nick".
However, health experts stated it was unlikely the diagnosis would be avian influenza.
Mr Whittingslow said the overall outlook for the dollar was positive.
"If you look at last night, the euro, sterling and the kiwi ... all came under pressure and the Aussie has performed relatively well," he said.
"We have to continue to play the ranges, which is frustrating people.
"If you look at where volatility levels, if you take the kiwi out of play, most currencies have got 12-month and longer lows, which is a dangerous recipe when the market gets complacent.
THE dollar was lower at noon after trading in a tight range in the morning session, with much of the market focussed on a fall in the New Zealand dollar.
At 1200 AEST the local currency was trading at $US0.7515/20, slightly down from yesterday's close of $US0.7543/48. During the morning session it reached a low of $US0.7505 and a high of $US0.7527.
St George head of foreign exchange Glen Whittingslow said dealing were very subdued with most of the focus on the New Zealand dollar.
The New Zealand dollar fell against the US dollar after comments by NZ finance minister Michael Cullen were interpreted as suggesting interest rates in the country would not rise any further.
Mr Whittingslow also said reports today that a passenger travelling from Vietnam to Sydney had a suspected case of bird flu could have given the local unit "a little nick".
However, health experts stated it was unlikely the diagnosis would be avian influenza.
Mr Whittingslow said the overall outlook for the dollar was positive.
"If you look at last night, the euro, sterling and the kiwi ... all came under pressure and the Aussie has performed relatively well," he said.
"We have to continue to play the ranges, which is frustrating people.
"If you look at where volatility levels, if you take the kiwi out of play, most currencies have got 12-month and longer lows, which is a dangerous recipe when the market gets complacent.