Dollar lower ahead of jobs figures

THE Australian dollar is nearly a third of a US cent lower ahead of the release of key monthly employment figures.

At 0700 AEST today, the currency was trading at 101.71 US cents, down from 102.01 US cents yesterday afternoon.

Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar traded in a fairly narrow range overnight with positive global sentiment preventing it from falling below the 101.55 US cent level it dropped to in the wake of Tuesday's interest rate cut.

"It's been stuck just above that level and it is probably being held by the global market sentiment which is pushing equity markets higher," he said.

The Reserve Bank of Australia cut the cash rate to a record low of 2.75 per cent at its monthly board meeting, which reduced demand for the currency.

Mr Speizer said the main driver for the currency today would be the release of the Australian Bureau of Statistics' labour force figures for April at 1130 AEST.

An AAP survey of 14 economists shows a median forecast for the unemployment rate to be steady at 5.6 per cent for April with total employment growing by 11,000.

He said the currency was likely to move higher if the data showed stronger-than-expected jobs growth and fall if the figures were weaker than expected.
 

View the original article here

Billabong in halt ahead of takeover update

WAVE OF INTEREST: Two consortiums have made $1.10-a-share offers for struggling retailer Billabong. Picture: Adam Head Source: The Courier-Mail

SHARES in troubled retailer Billabong are in a trading halt ahead of an update about its potential takeover.

Billabong is currently in exclusive talks with the Sycamore consortium, made up the retailer's US-based executive Paul Naude and private equity firm Sycamore Partners.

Sycamore Partners has made a $287 million offer for the Australian retailer.

The talks are due to end tomorrow, after the negotiating period was recently extended for a further 10 days.

Billabong today requested its shares be placed in a trading halt ahead of an announcement about the potential takeover.

The halt will last until Thursday at the latest, or until the release of its announcement.

Despite the ongoing talks with Sycamore, Billabong has repeatedly said there is no guarantee a takeover will proceed.

The retailer has also been in talks with rival consortium VF Corporation - the owner of The North Face and Timberland outdoor clothing brands - and private equity firm Altamont Capital Partners.

View the original article here

Dollar lower ahead of RBA decision

THE Australian dollar is lower ahead of the Reserve Bank of Australia's interest rate decision.

At 7am AEST today, the currency was trading at 102.54 US cents, down from 102.72 US cents yesterday afternoon.

The Reserve Bank of Australia (RBA) will announce its interest rate decision at 2.30pm AEST today after its monthly board meeting.

All 13 economists surveyed by AAP last week expected the RBA to keep the cash rate unchanged at three per cent.

But BK Asset Management managing director Kathy Lien said the market had put the odds of a rate cut at around 55 per cent.

Ms Lien said that while a rate cut would push the Australian dollar below 102 US cents, traders would also look closely at the statement accompanying the decision.

She said a cautious and dovish statement would weigh on the currency, even if the cash rate remained unchanged.

"Whether the AUD (Australian dollar) holds above 1.02 or drops to fresh two-month lows will hinge upon the tone and action of the RBA," she said. "Given the potential for a rate cut and the significance of this event, the risk is to the downside."

View the original article here

Dollar lower ahead of RBA decision

THE Australian dollar is lower ahead of the Reserve Bank of Australia's interest rate decision.

At 7am AEST today, the currency was trading at 102.54 US cents, down from 102.72 US cents yesterday afternoon.

The Reserve Bank of Australia (RBA) will announce its interest rate decision at 2.30pm AEST today after its monthly board meeting.

All 13 economists surveyed by AAP last week expected the RBA to keep the cash rate unchanged at three per cent.

But BK Asset Management managing director Kathy Lien said the market had put the odds of a rate cut at around 55 per cent.

Ms Lien said that while a rate cut would push the Australian dollar below 102 US cents, traders would also look closely at the statement accompanying the decision.

She said a cautious and dovish statement would weigh on the currency, even if the cash rate remained unchanged.

"Whether the AUD (Australian dollar) holds above 1.02 or drops to fresh two-month lows will hinge upon the tone and action of the RBA," she said. "Given the potential for a rate cut and the significance of this event, the risk is to the downside."

View the original article here