Aussie near 2-wk lows bonds soar on U.S.jobs data
Friday July 3, 2009, 9:39 amSYDNEY, July 3 (Reuters) - The Australian dollar was subdued near two-week lows on Friday as appetite for higher-yielding currencies and riskier assets took a beating after a bleak U.S. jobs report, while government bonds jumped on safe-haven inflows.
* U.S. employers shed nearly half a million jobs last month and the unemployment rate jumped to its highest in nearly 26 years, adding to a growing view that economic recovery will be slow. [ID:nN01210643]
* Aussie dived to its lowest since June 24 on the yen AUDJPY=R, falling to 75.77 yen, as leveraged positions were unwound and investors sought safe-haven assets and lower-yielding currencies.
* By 9:15 a.m. (2315 GMT), the Aussie was at $0.7921, down 1.5 percent from $0.8045 late here on Thursday. It had climbed to as high as $0.8156 earlier this week, but has since retreated amid doubts over a global economic recovery.
* European Central Bank (ECB) President Jean-Claude Trichet added to those concerns, saying euro-zone activity would likely remain weak for the rest of the year. The ECB left its benchmark rate at a record low of 1 percent, as expected. [ID:nL2512532].
* The CRB commodities index .CRB dropped 2.11 percent as metals, gold and grains were all dumped amid fears that the economic recovery was stalling. Australia is a big exporter of industrial raw materials.
* Australian bond futures jumped, tracking U.S. Treasuries and lifted by a rush to safety. Three-year bond futures YTTc1 added 0.160 points to 95.56, while ten-year bond futures YTCc1 added 0.105 points to 94.705. (Reporting by Anirban Nag; Editing by James Thornhill)
... read original articleFri 3rd July 2009 - 09:39am
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