Australian dollar stabilises as market mood improves

THE Australian dollar is slightly higher as global stock markets stabilise after last week’s heavy falls.

Close-up of used Australian one dollar coins photographed in Melbourne, Wednesday, June 13, 2012. Reserve Bank of Australia governor Glenn Stevens today said there are big benefits to Australians as consumers from the high Australian dollar (AUD). (AAP Image/Julian Smith) NO ARCHIVING

THE Australian dollar is slightly higher as global stock markets stabilise after last week’s heavy falls. At 0700 AEDT on Monday, the local unit was trading at 87.55 US cents, up from 87.47 cents on Friday.

Helping the market’s mood was a report that showed US housing starts rose 6.3 per cent in September, which was better than market expectations of a 5.4 per cent lift.

The University of Michigan consumer sentiment index unexpectedly rose in October to its highest level since July 2007.

Westpac senior market strategist in Wellington, Imre Speizer, said appetite for riskier assets like the Australian dollar and equities improved for the second consecutive day during the offshore session on Friday.

“US economic data was supportive, as were US earnings reports and a Wall Street Journal report said the People’s Bank of China will inject liquidity into 20 mid-sized banks,” he said.

“The Australian dollar remained in consolidation mode, trading between 87.36 US cents and 88.12 cents.” Local markets on Monday will focus on a speech by Reserve Bank of Australian assistant governor Christopher Kent to the Leading Age Services Australia (LASA) National Congress 2014 in Adelaide.

Originally published as Australian dollar stabilises as market mood improves