Aust dollar opens steady, but $US struggles in quiet trade
SYDNEY, Dec 12 AAP - The Australian dollar opened steady, but the US dollar struggledagainst higher yielding currencies in quiet trade.
At 0700 AEDT, the Australian dollar was unchanged at $US0.5603/08 from yesterday's close.
The Australian dollar spent most of the night stronger against the US dollar, but softenedto open in line with yesterday's close.
Overnight, the US dollar struggled against the commodity-based, high yielding currenciesof the dollar bloc.
Trading was mainly quiet with most of the market's attention drawn to United Statesretail sales and current account data due out tonight and Friday's consumer confidencefigures.
Dealers noted the performance of the US dollar and the prospects for economic recoverythere was the key for the dollar bloc.
As usual, the high yielding Australian dollar was attracting investors, but any gainswould likely be capped by risk aversion as uncertainty over war with Iraq dominated themarket's focus, dealers said.
The US dollar was fairly steady against the euro overnight, but could not garner toomuch support from comments by Japanese Prime Minister Junichiro Koizumi that a slightfall in the yen was more desirable than a rise under current market conditions.
Second tier data showing US consumer confidence took a nose dive in the week endingDecember 8, also weighed slightly on the US dollar.
The Australian dollar was up against the yen and slightly stronger against the euro,but softer against the New Zealand dollar and British pound.
On the day, the local market will look to labour force figures to be released at 1130 (AEDT).
JP Morgan strategists said the Australian dollar had potentially developed lower highsat $US0.5610 and was likely to come under further selling pressure.
CURRENCY TABLE: Currency snapshot at 0700 AEDTCURRENCY SPOT PREVIOUS CLOSEAUD/USD 0.5603-08 0.5603-08 AUD/JPY 69.28-33 69.17-22 AUD/EUR 0.5558-63 0.5557-62 AUD/NZD 1.1150-60 1.1176-86 AUD/GBP 0.3552-57 0.3566-71 EUR/USD 1.0081-86 1.0082-87 USD/JPY 123.60-65 123.46-51 EUR/JPY 124.62-67 124.50-55
(*Closes taken at 1700 AEDT previous local session)
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KEYWORD: AUST DOLLAR OPEN
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