The Australian dollar continues to take its lead from the ongoing Eurozone sovereign debt crisis. With Greece moving ever closer to default, investors’ appetite to buy the high yielding currency is being sorely tested.
The Australian dollar did briefly benefit on news that the country’s exporters helped to post an improved trade surplus of A$1.8lbn during July.
Another positive note saw consumer confidence rise by a very impressive 8.1% from a month earlier – possibly driven by the hope that the Reserve Bank of Australia will cut its benchmark rate from the current 4.75% level, as global growth prospects decline.
The construction sector saw the number of new housing starts dip by 4.7% during the quarter ending June2011, with weakening employment prospects suggesting any future rate movement will be a reduction.