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(January 10,2012) THE Australian dollar was lower today, on a weaker global outlook and unimpressive domestic retail figures. At 5pm AEDT, the Australian dollar was trading at 101.67 US cents, down from Friday's close of 102.27 US cents. Since 7am AEDT, the local currency has moved between 101.46 US cents and 102.15 US cents. The Aussie dollar dropped this morning after figures from the Australian Bureau of Statistics showing retail trade was flat in November, compared to economists' predictions of a 0.3 per cent rise. Commonwealth Bank currency strategist Joseph Capurso said the market had shown very little movement on Monday, with the exception of a notable move downwards following release of the retail trade data. "Those figures were a lot weaker than expected, so the Aussie dollar lost about half a cent after that report was released," he said. "It's now tracking a little bit higher." Mr Capurso said there was plenty of international data this week to shape where the Aussie dollar could go, but warned that it could drop lower on negative European sentiment. "We've got Chinese GDP (gross domestic product) figures for the December quarter and trade balance, as well as US retail trade and quite a few debt auctions in Italy, Greece and Spain," he said. "All of that will be a real focus for the marketplace. "I think there's a good chance the dollar will head under parity by the end of the week - its partly to do with thinner volumes, but mostly the weaker global economic outlook, and stronger US dollar based on positive data there." At 5pm AEDT, the Australian dollar was at 78.25 Japanese yen, down from Friday's close of 78.97 yen, and at 80.05 euro cents, down from 80.08 euro cents. |
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