Australian Dollar at its Seven Month Highs

Submitted by Craig Strzelecki on 5 January, 2006 - 09:00

The Australian dollar (AUD) has opened stronger hitting a seven month high; US currency falls on weaker than expected GDP

The Australian dollar (AUD) has opened stronger hitting a seven month high as the US currency fell on the back of a lower than expected. At 7am (AEST) the Aussie dollar was at US75.88¢, compared to Friday's close of US75.46¢, up 42 pips. During weekend trade, the Aussie had a trading range of 56 pips from US75.50¢ to a high of US76.06¢, which is the highest Aussie dollar price since October 7, 2005. The US Commerce Department released Gross Domestic Product (GDP) figures that revealed that GDP grew by 4.8 per cent in the March quarter instead of the expected 4.9 per cent. There is also renewed speculation the the Reserve Bank of Australia (RBA) may lift Australia's interest rate by 25 basis point to 5.75 pr cent this week. Another factor playing on the Aussie dollar highs is commodity prices.