Australian Dollar May Fall on Slowing Growth, Credit Concerns

The Australian dollar may fall
against its U.S. opposite number on guess marks of slowing
global economical growing and a deterioration recognition crisis will deter
investors from purchasing higher-yielding currencies.

The local dollar traded near its last this calendar month after a
government study March 7 showed the U.S. lost occupations in February,
adding to concerns the world's biggest economic system is in a recession. The currency slid against the hankering as Australia's money market
rates climbed to the peak in 13 years, encouraging investors
to cut retentions of the nation's higher-yielding assets purchased
with finances from Japan.

''Combine the U.S. information with the reemergence of the credit
crunch issues and I believe you've definitely seen the extremum inch the
Australian dollar,'' said , a currency
strategist at Westpac Banking Corp. in Sydney. ''People volition be
focused on hazard antipathy which won't be positive for the
Aussie,'' he said, referring to the currency by its nickname.

The Australian dollar traded at 92.68 U.S. cents at 9:44
a.m. inch Sydney from 92.67 cents in late New House Of York trading on
March 7. The currency was at 94.74 hankering from 95.13 last week.

Should the currency diminution below 92.40 cents today it will
head toward 91.90, said Cavenagh. A interruption of 94.60 hankering will
target 94 yen, he said.

Australia's dollar driblet as low as 92.47 cents on March 7
after the U.S. lost 63,000 occupations in February, following a drop of
22,000 in January. The U.S. is Australia's third-largest export
market behind People'S Republic Of China and Japan.

Money Market Rates

Concern the recognition crisis is deepening drove borrowing
costs between Australia's loaners to the peak since April
1995. The three-month bank measure barter rate, which Banks utilize to
determine outputs on variable charge per unit loans, was at 8.01 percent
compared with 7.46 percentage a calendar month ago.

Australia's dollar is considered a higher-yielding currency
because the nation's benchmark nightlong cash-rate mark is at
a 12-year high of 7.25 percent. That compares with a 3 percent
interest charge per unit in the U.S. and 0.5 percentage in Japan. The rate
premium do it a favourite of so-called carry trades.

In the trade, investors acquire finances in a state with low
borrowing costs and put in another with higher involvement rates,
earning the spreading between them. The hazard is that currency moves
erase those profits.

Australian authorities chemical bonds gained for a 2nd twenty-four hours as
turmoil in recognition marketplaces spurred investors to seek the relative
safety of authorities debt.

The output on the 10-year enslaved drop 4 footing points, or 0.04
percentage point, to 6.06 percent, reaching the last since Jan.
21. The terms of the 6 percentage chemical bond maturing in February 2017
rose 0.299, or A$2.99 per A$1,000 human face amount, to 99.585. Bond
yields move inversely to price.

To reach the newsman on this story:
in Sydney at
.