Australian Dollar Falls Below Greenback Parity

Marcus Jacob
14 May, 2012
New York City

Australian stocks gained as miners edged lower and the dollar fell to a new low in five-months and declined below parity with the greenback. The declined after comments from the central bank official indicating weak long term growths in Australian economy outside the mining sector.

[R]8:00 PM Sydney – Australian stocks gained as miners edged lower and the dollar fell to a new low in five-months and declined below parity with the greenback. The declined after comments from the central bank official indicating weak long term growths in Australian economy outside the mining sector.[/R]

Australian stocks edged higher and the dollar declined to another low in five months and dropped below parity with the greenback.

Australian retail sales in March increased 0.9% to $21.2 billion and for the quarter to the month sales rose 1.8%, ahead of expectations.

The private survey conducted by ANZ Bank showed job advertisement in April fell 3.1%, after rising for three previous months in a row.

The ASX 200 index rose 11.90 to 4,297 and All Ordinaries index edged up 9.18 to 4,351.87.

In stock trading, turnover decreased to 1.5 billion shares worth $4.1 billion and 401 shares gained, 551 decreased and 426 closed unchanged.

The Australian dollar declined to 99.98 U.S. cents and traded at a new low in five months since December 21as the prospect of another rate cut looms and RBA deputy governor Phillip Lowe warned at a speech today that growth in non-mining sector is likely to disappointing in the several years ahead.

Stock Movers

David Jones Limited added 1 cent to $2.37, Harvey Norman Holdings closed up at 2 cents to $2.02 and Woolworths increased 18 cents to $26.97.

Myer rose 4 cents to $2.32 and Kathmandu edged up 2 cents to $1.28. Billabong International Limited gained 4 cents to $2.30.

Mining and resources linked companies traded lower after material prices fell on the worries linked to the euro zone.

BHP Billiton increased 9 cents to $34.46 and Rio Tinto decreased 7 cents to $61.

Lynas Corporation Limited gained 6 cents to $1.03 and Iluka Resources soared 33 cents or 2.4% to $13.69. Newcrest Mining slipped 10 cents to $25.65 and Kingsgate unchanged to $5.63.

Oil Search Limited fell 3 cents to $6.97 and Santos Limited slumped 17 cents to $12.69.

Westpac Banking Corporation closed up 16 cents at $22.71 and Commonwealth Bank of Australia surged $1 to $52.80. Bank of Queensland unchanged to $6.76. ANZ increased 16 cents to $22.20. National Australia Bank soared 25 cents at $24.80.

Stockland gained 5 cents to $3.29 and Leighton decreased 6 cents to $18.78.

Qantas edged up 1 cent to $1.52, Virgin Australia inched up 1.5 cents to 43.5 cents and Flight Centre gained 8 cents to $19.70.

QR National fell 4 cents to $3.46.