Posted on 08/03/2008 8:10:41 PM PDT by AmericanMade1776
THE Australian dollar was weaker at noon, after retesting a three-month low, as less dire than expected US employment data helped the American currency maintain strength.
Ironically, the local unit later stayed above $US0.9300 even though domestic data on job ads and house prices pointed to signs of an economic slowdown.
At 12noon (AEST), the Australian dollar was trading at $US0.9315/17, down from Friday's close of $US0.9364/66.
During the morning, the Australian dollar traded between a high of $US0.9319 and and a three-month low of $US0.9285. It reached that low at 9.30am AEST, after testing it during the offshore session.
The Australian dollar continued to struggle this morning as the US unit maintained its strength against a range of currencies.
Forecast senior currency analyst Lee Wai Tuck said the US dollar kept its momentum because American non-farm payrolls data for July, released on Friday night, was less dire than market predictions.
"Overall, the jobs data did give the US dollar some support,'' he said from Singapore.
(Excerpt) Read more at theaustralian.news.com.au ...
as the economies of the world slow down,
the u.s. dollar will go up against their currencies.
Not really, it may even make the US Dollar worse. You have to remember what was saving the US Dollar from a total collapse was many foreign banks bought them. The US was the Gold standard of international currency. If any other country tried to do what we did, they’d end up like Zimbabwe.
So if the rest of the world’s economies start slowing down, then they’ll have less money to buy US Treasury bills. And with fewer customers, the US will need to either increase the interest paid on these T-bills, and raise taxes and cut spending.
interesting, makes sense.
i was repeating what i read in the wsj.
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