Dollar holds ground


dollar, world, globe, moneyThe Australian dollar has held its ground as optimism returned to markets helped by the release of some positive US and German economic data.

At 0700 AEDT on Wednesday, the local unit was trading at 89.23 US cents, up from 89.19 cents on Tuesday.

Since 1700 AEDT on Tuesday, the Australian dollar traded between 88.93 US cents and 89.72 cents.

The number of unemployed people in Germany fell by 15,000 in December, the unemployment rate held steady at 6.9 per cent and retail spending increased by 1.5 per cent in November.

Westpac New Zealand senior market strategist Imre Speizer said the data helped prevent the Australian dollar from falling but it was unable to break out of its current trading range and move above 90 US cents.

“Sentiment was mainly positive overnight,” he said.

“Strong German retail sales and a fall in unemployment helped the Eurostoxx 50 close up 1.4 per cent.

“Also helping was an improvement in the US trade balance.”

The US international trade deficit shrank sharply in the November to be at its smallest point in four years.

Mr Speizer said markets will be focusing on the release of the minutes of the US Federal Reserve’s December policy meeting early on Thursday morning.



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