Not since 14th June 2012 have we seen the HSRA (Hedge Settlement Rate Australia – Exchange Rate) rate drop below parity, but we can report that yesterday it did, closing at 0.9984.
With the Reserve Bank of Australia dropping interest rates 25 basis points last week and the Federal Budget due out on Wednesday, many say that these are “the straws that broke the camel’s back”. Psychologically this could be a great sign for manufacturers and exporters in general.
Following a reasonably steady few months in FX markets, it’s interesting to note that only 4 weeks ago (12th April 2013), the Aussie was sitting at 1.05445, and more than 5c higher than reported today.
For those of you that may be interested, our sister company Australian Frontline Machinery is currently conducting a sale of used Military equipment on Grays Online. The sale can be viewed via links from the Sell & Parker Website. I couldn’t help myself and purchased a Suzuki DRZ400 trail bike a few weeks ago, it has 1500km on the clock and has been serviced 7 times! The CEO, Luke Parker was interviewed by Ross Greenwood on his Money program on 2GB last week, we will put a link to this interview on the website next week.
**** Base Metals Supported Ahead Of China Data – ANZ **** By Clementine Wallop @ dowjones.com
Base metal prices will likely remain supported ahead of China industrial production data due later in the session, ANZ analysts say in a report, as prices trade slightly higher on the London Metal Exchange. ANZ notes that a recent decline in Shanghai stocks and a reduction in short bets are additional supportive near-term factors for copper. For aluminum, however, soft Brent crude prices could be a near-term headwind. Aluminum is more closely correlated with oil prices than other metals because of its energy-intensive production process.