Dollar hits fresh two-month low

THE Australian dollar has fallen to a fresh two-month low during overnight trade, before recovering most of its lost ground amid gains on US share markets.

The currency fell to 101.55 US cents early on Wednesday morning as traders in Europe and the US reacted to the Reserve Bank of Australia cutting its key interest rate to a record low of 2.75 per cent.

But HiFX senior trader Stuart Ive said the currency rebounded as US stocks pushed higher, with the Dow Jones Industrial Average closing above 15,000 points for the first time and the S&P 500 reaching a fresh all-time high.

"We saw a rebound, although it was really only a small one," he said. "That was brought about, really, because of the Dow and S&P 500 starting to hit new highs again."

At 7am AEST today, the Australian dollar was trading at 101.88 US cents, down from 101.90 US cents yesterday afternoon.

Mr Ive said the key driver for the Australian dollar today would be the release of Chinese trade balance figures.

He said the currency was likely to trade in a range of between 101.50 US cents and 102.34 US cents.

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Dollar hits fresh two-month low

THE Australian dollar has fallen to a fresh two-month low during overnight trade, before recovering most of its lost ground amid gains on US share markets.

The currency fell to 101.55 US cents early on Wednesday morning as traders in Europe and the US reacted to the Reserve Bank of Australia cutting its key interest rate to a record low of 2.75 per cent.

But HiFX senior trader Stuart Ive said the currency rebounded as US stocks pushed higher, with the Dow Jones Industrial Average closing above 15,000 points for the first time and the S&P 500 reaching a fresh all-time high.

"We saw a rebound, although it was really only a small one," he said. "That was brought about, really, because of the Dow and S&P 500 starting to hit new highs again."

At 7am AEST today, the Australian dollar was trading at 101.88 US cents, down from 101.90 US cents yesterday afternoon.

Mr Ive said the key driver for the Australian dollar today would be the release of Chinese trade balance figures.

He said the currency was likely to trade in a range of between 101.50 US cents and 102.34 US cents.

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Dow in fresh record as stocks push higher

New record high for the Dow Jones

US stocks brushed off an early move toward a correction and added to the bull run, with the Dow setting a fresh record for the fifth straight day.

A late thrust upward by Apple shares, which finished 1.4 per cent higher, also took the S&P 500 tantalisingly close to its all-time record.

At the close the Dow Jones Industrial Average was up 50.22 points (0.35 per cent) at 14,447.29. The broader S&P 500 gained 5.04 (0.32 per cent) to 1556.22, still nine points below the all-time closing high set on October 9, 2007.

The tech-heavy Nasdaq Composite meanwhile gained 8.50 points (0.26 per cent) to 3252.87.

Early trade was dimmed by fresh European data on fourth quarter 2012 growth that confirmed the continuing recession, though Greece's contraction came in less severe than earlier estimated. In China, inflation hit a 10-month high of 3.2 per cent in February while growth in industrial output and retail sales slowed.

Apple's spike, to finish at $US437.87, was attributed to market talk that the company could decide to pay shareholders a special dividend, which activist shareholders have been pressing the company for.

Also in tech, shares of Blackberry jumped 14.1 per cent after it announced the US launch date for its new Z10 smartphone, March 22.

Valero Energy led a general fall in energy shares as oil prices remained weak, losing 3.9 per cent.

Retailer Dick's Sporting Goods plunged 10.9 per cent to $US45.11 after missing profit expectations in its fiscal fourth quarter earnings, coming in at $US1.03 a share against an expected $US1.06. The first quarter 2013 forecast was lower than expected at 47 cents a share.

Online gaming house Zynga added 10.1 per cent.

Bond prices were flat. The yield on the 10-year Treasury slipped to 2.06 per cent, while the 30-year yield was 3.25 per cent. Bond prices and yields move inversely. 

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Dow extends record run with fresh highs

(FILES) People walk on February 10, 2009 outside the New York Stock Exchange. US stocks rebounded sharply June 10, 2010 from the previous day's slump as positive economic news in Asia helped ease fears about the strength of the global recovery. The Dow Jones Industrial Average vaulted 214.33 points (2.17 percent) to 10,113.43 in opening trades. The tech-rich Nasdaq index climbed 38.21 points (1.77 percent) to 2,197.06 and the broad-market S&P 500 index advanced 23.08 points (2.19 percent) to 1,078.77.AFP PHOTO/Stan Honda / FILES Source: The Australian

THE Dow pushed to fresh highs today one day after notching an all-time record, even as the Federal Reserve said economic growth continued at a dull pace.

The Dow Jones Industrial Average rose 42.47 points (0.30 per cent) to 14,296.24, a new all-time high.

The broad-based S&P 500 edged up 1.67 (0.11 per cent) to 1541.46, while the tech-rich Nasdaq Composite Index declined 1.77 (0.05 per cent) to 3222.37.

The market gains came despite a mixed report on US economic conditions from the Federal Reserve.

Although the Fed's Beige Book showed "modest to moderate" economic expansion, it noted concerns about the impact of new tax hikes on consumer spending.

Michael James, managing director of equity trading at Wedbush Morgan Securities, said many investors continued to have doubts given the uncertainty in Europe and high unemployment in the US. But momentum was pushing stocks higher.

"The market resilience and the index going higher are pulling people into the market that don't want to be buying," Mr James said. "People are forced to be buying chasing the performance."

Among Dow components, the biggest gainers included Bank of America (up 3.2 per cent), Alcoa (up 2.6 per cent) and Cisco Systems (up 2.3 per cent). Hewlett-Packard, also a Dow component, rose 2.8 per cent on reports of fresh shareholder pressure to revamp the computer maker's board and possibly top management.

Another Dow member, Exxon Mobil, dropped 0.1 per cent after signaling 2013 production would drop one per cent from the 2012 level. Staples increased its quarterly dividend, but sank 7.2 per cent after reporting quarterly revenues and full-year 2013 earnings guidance that missed expectations.

American Eagle Outfitters plummeted 10.1 per cent after signaling that first-quarter earnings would be lower than last year's levels. The company cited "macroeconomic headwinds and unfavourable weather" as drags on consumer spending.

Bond prices fell. The yield on the 10-year Treasury rose to 1.94 per cent from 1.89 per cent lyesterday, while the yield on the 30-year roe to 3.15 per cent from 3.10 per cent. Bond prices and yields move inversely.

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