Aust dollar hits two-month high

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Better economic figures out of the US have failed to deter the Australian dollar, which rallied to a two-month high overnight.

At 7am (AEDT), the local currency was trading at US78.76c, up from US78.67c on Tuesday.

The Australian dollar bounced as high as US79.38c overnight, its highest level since January 28.

That was despite strong economic data out of the US, where core inflation ticked up to 1.7 per cent and sales of new homes climbed to their fastest pace in seven years.

Bank of New Zealand strategist Kymberly Martin said the local currency reached its peak around the time the US inflation data were released, despite the figures being stronger than market expectations.

Source : MarketsSpectator

Gold Advances to Two-Week High on U.S. Interest-Rate Outlook

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Gold rose to the highest in two weeks amid speculation that U.S. policy makers will hold off on raising interest rates until later this year.

Federal Reserve Chair Janet Yellen signaled last week that the central bank is in no hurry to raise rates after the Fed dropped a pledge to be patient on tightening. Higher borrowing costs cut gold’s allure because the metal generally offers returns only through price gains.

The dollar touched the lowest in two weeks against a basket of 10 currencies after Fed Vice Chairman Stanley Fischer said on Monday that while higher rates will probably be warranted by before the end of the year, policy makers want to be “reasonably confident” that inflation is rising toward their 2 percent goal.

On the Comex in New York, gold futures for April delivery rose 0.3 percent to settle at $1,191.40 an ounce at 1:39 p.m. Earlier, the price reached $1,194.50, the highest for a most-active contract since March 6.

Holdings in exchange-traded products backed by gold climbed on Monday for the first time in a month.

Source : Bloomberg

U.S. Stocks Decline as Dollar Rises With Treasuries; Metals Gain

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U.S. stocks dropped while the dollar strengthened as data on consumer prices showed signs inflation is perking up. Treasuries advanced after the sale of two-year notes was characterized as good by firms obligated to bid.

The Standard & Poor’s 500 Index lost 0.6 percent at 4 p.m. in New York, its 25th day without consecutive gains, the longest stretch since 2001. The Nasdaq Composite Index erased earlier gains to finish lower by 0.3 percent. The Stoxx Europe 600 Index climbed 0.4 percent. The Bloomberg Dollar Spot Index added 0.2 percent. The yield on 10-year Treasuries fell four basis points to 1.87 percent. U.S. crude added 6 cents to settle at $47.51 a barrel. Gold rose to a two-week high while copper increased for a fourth day.

The cost of living in the U.S. climbed 0.2 percent in February, as fuel costs stabilized. Fed policy makers are looking for inflation to accelerate and close in on their 2 percent target as they weigh the timing of the first rate increase since 2006. Purchases of new homes in the U.S. unexpectedly rose in February to a seven-year high. A $26 billion sale of two-year notes was rated a ‘4’ by five of the Fed’s primary dealers.

Source : Bloomberg

Banks Push European Stocks Higher With Stoxx 600 Nearing Record

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Lenders led a rally in European stocks, sending the Stoxx Europe 600 Index near a record.

Spain’s Banco Santander SA and Italy’s Intesa Sanpaolo SpA climbed more than 1.5 percent, while France’s Societe Generale SA added 2.5 percent. Deutsche Lufthansa AG lost 1.6 percent as Germanwings, its low-cost subsidiary, operated a plane that crashed in southern France.

The Stoxx 600 advanced 0.3 percent to 402.49 at the close of trading in London, reversing an earlier drop of as much as 0.5 percent as data showed that euro-area business activity expanded faster than forecast. For Germany, a composite index the manufacturing and services industries rose to 55.3 in March from 53.8 in February, marking a 23rd month of growth. The Stoxx 600 ended 0.7 percent away from a record reached in 2000.

European shares have rallied 18 percent this year, with the Stoxx 600 closing at its highest level since 2000 last week, as the European Central Bank started a quantitative-easing program and speculation increased that the Federal Reserve won’t rush to raise rates.

Source : Bloomberg

U.S. Stocks Fluctuate, Dollar Rises With Treasuries; Metals Gain

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U.S. stocks fluctuated, the dollar advanced and Treasuries rose as investors assessed the outlook for higher interest rates after consumer prices fell short of the Federal Reserve’s inflation target.

The Standard & Poor’s 500 Index fell 0.1 percent at 12:42 p.m. in New York. The Nasdaq Composite Index approached an all-time high as Netflix Inc. and Google Inc. paced gains in technology shares. The Stoxx Europe 600 Index climbed 0.4 percent. The Bloomberg Dollar Spot Index added 0.2 percent, while the yield on 10-year Treasuries slipped one basis point to 1.89 percent. West Texas Intermediate crude fluctuated near $47.50 a barrel. Gold rose 0.1 percent.

The cost of living in the U.S. climbed 0.2 percent in February, as fuel costs stabilized. Prices were unchanged from a year earlier. Fed policy makers are looking for inflation to accelerate and close in on their 2 percent target as they weigh the timing of the first rate increase since 2006. Purchases of new homes in the U.S. unexpectedly rose in February to a seven-year high.

The Bloomberg dollar gauge had its biggest drop in three years last week and U.S. equities rallied after the Fed cut projections for future interest rates, inflation and growth. The S&P 500 is less than 1 percent from its latest all-time high set on March 2, while the Nasdaq Composite Index closed Monday 0.8 percent below its March 2000 record.

Source : Bloomberg