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FOREX - AUSTRALIAN DOLLAR BEGINS FIRMER - MAR 1, 2006.

AsiaPulse News

| March 01, 2006 | COPYRIGHT 2006 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

SYDNEY, Mar 1 Asia Pulse - The Australian dollar staged a recovery overnight to open about half a US cent higher today, as its US counterpart tumbled on the back of disappointing economic data.

At 0700 AEDT the local unit was trading at US$0.7427/32, compared with yesterday's close of 0.7372/80.

Overnight it reached a low of US$0.7375 and a high of 0.7438.

Westpac Bank senior currency strategist Richard Franulovich said the Australian dollar rallied on the back of a softer US dollar after a raft of disappointing economic data.

"We had a mix of US data that was not that upbeat," he said.

The below forecast results for existing home sales, consumer confidence and the Chicago manufacturing PMI (which measures manufacturing activity in the midwest) more than offset an upward revision to fourth quarter gross domestic product (GDP) to an annual rate of 1.6 per cent.

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Source: HighBeam Research, FOREX - AUSTRALIAN DOLLAR BEGINS FIRMER - MAR 1, 2006.

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