Friday, July 16, 2010

Dollar flat at noon on US worries

THE dollar was flat at noon, falling in line with other commodity currencies as investors worry about a US economic slow down.

At midday AEST, the dollar was trading at $US0.8787/90, up from yesterday's close of $US0.8785/87.

Since 7am AEST, the domestic dollar traded between $US0.8844 and $US0.8790.

4Cast Financial Markets head of research Ray Attrill said the unit had been under sustained pressure since early in the local session.

"We've had some slippage this morning," Mr Attrill said.

"It seems to be part of a bigger move into the euro, but it also seems to be a morning when all commodity currencies are under pressure.

"There's also some reflection on the Chinese data from yesterday, and on top of that we have fears about a US slow down."

Mr Attrill said investors were digesting key US data released overnight and Chinese data released earlier during that trading day that sparked fears of an economic slow down in both nations.

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Dollar flat at noon on US worries

A US Federal Reserve report on industrial production showed that overall output at the nation's factories, mines and utilities rose 0.1 per cent in June.

It was the fourth straight monthly gain. But factory output - the largest component of industrial production - dropped 0.4 per cent.

Also, two manufacturing surveys indicated expansion in factory activity had slowed significantly in the north-eastern region of the US during July.

Mr Attrill said he expected a quiet day for the local dollar, with no market moving data due.



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