Australian Dollar Decline Extends to Eighth Week

Marcus Jacob
15 Dec, 2013
New York City

Australian indexes gained and the Aussie dollar eased against international currencies. Commercial finance commitments in October declined 3.9%, the statistics office reported. GUD Holdings declined after earnings fell.

[R]4:30 PM Sydney – Australian indexes gained and the Aussie dollar eased against international currencies. Commercial finance commitments in October declined 3.9%, the statistics office reported. GUD Holdings declined after earnings fell.[/R]

Australian stocks declined for the sixth day in a row and energy, mining and banking stocks led the declined.

Australian dollar slumped to 89.25 U.S. cents. Stock trading turnover declined to 779 million shares worth $4.8 billion.

For the week, the Aussie declined 2% as the Reserve Bank of Australia actively sought to weaken the currency since October and targeted 85 cents to a U.S. dollar.

Australian dollar extended its loss for the eighth week in a row and, the longest weekly decline period since March 1985.

The ASX 200 index increased 35.90 or 0.7% to close at 5,098.40 and the broader All Ordinaries gained 32.30 to 5,101.50. For the week, ASX 200 slipped 1.7%.

The Australian Bureau of Statistics reported commercial finance commitments in October declined 3.9% to $34.34 billion. Lease finance rose 1.1% to $383 million and housing finance for owner occupied residences increased 1.7% to $16.185 billion.

Stocks in Review

Rio Tinto slid 5 cents to $65.09.

BHP jumped 31 cents to $35.85 oil and gas producer, is studying expansion in Trinidad and Tobago as a third production region along with the U.S. and Australia.

Woodside Petroleum Limited climbed 54 cents to $37.75.

Westpac gained 18 cents to $31.

ANZ Banking Group fell 0.3% to $30.25 after the bank decided to refrain its standard variable home loan rate unchanged at 5.88% in December meeting regulatory requirement.

Crown Resorts Limited dropped 4.3% to $15.90 and gaming and entertainment group said it is in talks with the Victorian government including new casino gaming machine levy of $22,715 a year per machine.

GUD Holdings Limited declined 3.7% to $5.15 after the cleaning products maker estimated earnings-before-interest-and-tax dropped 20% in the 2013 financial year and underlying net profit-after-tax slumped 15% to $37.4 million.

Wesfarmers Limited rose 0.5% to $41.30 after the conglomerate said its chemicals, energy and fertiliser unit agreed to sell its 40% stake in the Western Australian-based industrial gas producer ALWA to Air Liquide Australia Ltd.

Yancoal Australia Limited jumped 2.8% to 74 cents after coal producer reached an agreement for loan facility with major shareholder Yanzhou Coal Mining Company Limited for $250 million for five-and-a-half years.