The Australian currency was weak in trading on Monday afternoon in New York. The aussie fell against the majors as the Australian government has upwardly revised the forecast for its budget surplus for the fiscal year ending June 30, 2008. The Australian dollar dropped against its American counterpart in trading on Monday afternoon. The decline brought the aussie to a mark of 0.8891 against the buck as action progressed. The pair moved as the Federal Reserve Bank of New York released its report on business conditions in the New York manufacturing sector in the month of October, showing that the pace of growth in the sector accelerated unexpectedly. The New York Fed said its general business conditions index jumped to 28.8 in October from 14.7 in September, with a positive reading indicating growth in the sector. Economists had been expecting the index to edge down to 14.0. The Australian currency was weak against its British counterpart in action on Monday. By the mid-afternoon, the aussie had declined to a mark of 2.2701. Traders moved as the U.K.'s annual house price inflation slowed to 11.4% in August from the 12.4% recorded in July. The annual increase came in line with economists' expectations. The mix-adjusted average house prices amounted to 219,528 pounds, larger than the 218,479 pounds in July. The report noted that the price index of properties bought rose 0.5% in August from the prior month compared with a 1.4% increase during the same period last year. In trading against its European counterpart on Monday, the Australian currency experienced weakness into the afternoon action. The aussie declined steadily to a mark of 1.5786 as action progressed. The currencies traded as the International Corporate Governance Network remarked German plans to restrict co-operation between shareholders could jeopardize responsible share ownership, healthy investor activism and confidence in Europe's largest economy in a letter to Finance Minister Peer Steinbruck. New rules to regulate investors working in concert are scheduled to be introduced later this month. Versus the yen, the aussie saw weakness in trading on Monday afternoon. The Australian currency declined to a mark of 105.43 as action progressed. The pair moved as Japanese industrial output grew 3.5% month-on-month in August, revised from 3.4% initially estimated, a final report from the Ministry of Economy, Trade and Industry showed Monday. In July, industrial production declined by a seasonally adjusted 0.4%. On a yearly basis, industrial production improved 4.4% in August, larger than the 3.2% growth registered in the prior month. The Australian government has upwardly revised the forecast for its budget surplus for the fiscal year ending June 30, 2008. A day after prime minister John Howard called for elections on November 24, Costello says the government now expects an underlying cash surplus of A$14.8 billion - up from May's budget estimate of A$10.6 billion. Costello also raised its surplus estimate for the following year to A$14.4 billion - up from the pervious estimate of A$12.7 billion.
October 15, 2007 2:36 PM