Australian Dollar Poses Strong Numbers For 10 Weeks Running

For 10 consecutive weeks, the Australian dollar has been performing better compared to a sagging Euro. Overnight, the dollar traded to about 85 euro cents, as it climbs to a new record, putting the euro behind it by two percent.

The dollar was at its highest since April 30 as it traded at $US 1.043 to close by day’s end. Even as it briefly went down during trading early this Friday, its performance was still up to par.

Analysts say that factors affecting the global economy seem to drive the Australian dollar higher.

Prices of imports also rose to figures slightly higher than the expected value of 1.5 percent last quarter, according to reports. The government data showed that second quarter increase was at 2.4 percent and that petrol and pharmaceuticals were credited for this.

Exports remain firm at one percent since the first quarter, which means that industries dealing with metal ores and gas were able to recoup or had little gains as a result.

Expectations this week, however, were reduced due to an anticipated rate cut by the Reserve Bank of Australia, which is set for August.

Others say that the US data this week was slight weaker, which also contributed to the easing of the Australian dollar.

The Labor Department in the US reported an increase in job claims during the week ending July 14, to as much as 10 percent or 386,000, up from 365,000. Home sales also fell to 5.4 percent in June, where analysts were expecting it would do better.