Herald Sun
Dip in dollar after trade figures

Dip in dollar after trade figures

Thu July 5, 2012 9:09am

THE Australian dollar fell slightly after economic data showed the country's trade deficit widened in May.

AT midday the Australian dollar was trading at 102.54 US cents, down from 102.89 US cents yesterday.

National Australia Bank currency strategist Emma Lawson said the currency lost ground after data released by the Australian Bureau of Statistics showed the nation's trade deficit widened to $285 million in May, seasonally adjusted.

However, she said the market had been quiet as traders waited for announcements from the European Central Bank (ECB) and Bank of England (BoE), due tonight (Australian time).

"The market is very much looking ahead to tonight with the two major decisions going on," she said.

"Trading is very light this morning... but the market can be a little jumpy ahead of events due to low liquidity."

The ECB is expected to announce an interest rate cut while the BoE is expected to announce a STG50 billion ($A76.78 billion) stimulus package to boost recession-hit Britain.

Meanwhile, Australian bond future prices were higher at noon.

At midday today, the September 10-year bond futures contract was trading at 96.955 (implying a yield of 3.045 per cent), up from 96.895 (implying a yield of 3.105 per cent) yesterday.

The September three-year bond futures contract was at 97.510 (2.490 per cent), up from 97.460 (2.540 per cent).





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