The
Australian dollar is firmer as disappointing American retail sales
figures make traders question the timing of an expected US interest rate
rise.
At 12.00opm (AEDT) on Friday, the local currency was trading at US76.91c, up from US76.20c on Thursday.
The
exchange rate rose above US77c during the early hours of Friday morning
after official data showed that US retail sales fell 0.6 per cent in
February.
The
result, which went against market expectations of a 0.3 per cent rise,
is prompting traders to question an whether there will be a mid-year
Federal Reserve interest rate rise.
The
Fed's Federal Open Market Committee meets next week, with traders
waiting to see if it keeps the word "patient" in regards to a rate rise
in its following statement.
Meanwhile, the bond market firmed on the weak US retail sales figures.
At
12.00pm (AEDT), the March 2015 10-year bond futures contract was
trading at 97.498 (implying a yield of 2.502 per cent), down from 97.523
(2.477 per cent) on Thursday.
The March 2015 three-year bond futures contract was at 98.120 (1.880 per cent), down from 98.160 (1.840 per cent).
Source: Businness Spectator
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