SYDNEY, Nov 13 (Reuters) - The Australian dollar was sharply
lower on Thursday, having shed over two U.S. cents and four yen
as equities and commodities were hammered by global growth
worries.
* Risk aversion sent the Aussie tumbling to 60.50 yen , from 64.39 late here on Wednesday, as the Japanese currency gained across the board on safe-haven flows.
* Aussie fell to $0.6370, from $0.6595 on Wednesday, as investors fled to the liquidity of short-term U.S. Treasuries. It also lost ground to the euro and Swiss franc.
* Australian bond futures benefited from the safe-haven flows and as gloomy global news reinforced expectations the Reserve Bank of Australia (RBA) would cut rates again aggressively in December, if not sooner.
* The market is now almost fully pricing in a cut of 100 basis points in December taking rates to 4.25 percent, which would be the lowest since late 2001. Further easing toward 3.5 percent is priced in for next year.
* Three-year bond futures jumped 0.165 points to
96.220, the highest in at least 16 years, while the 10
year contract climbed 0.155 to 95.065.
* Stocks on Wall Street sank over 5 percent after Best Buy warned of a bleak outlook and the U.S. Treasury backed away from a plan to buy distressed mortgage assets from banks. .
* Commodities took a beating with the CRB index losing 2.63 percent to 245.44, while oil dropped around 5 percent to $55.75 a barrel.
* Australia is a major exporter of resources, so falling prices and the risk of global recession have a big impact on the domestic economy.
* The only domestic data on Thursday are average weekly earnings, a series that rarely moves the market.
(Reporting by Wayne Cole; Editing by Jonathan Standing) Keywords: MARKETS AUSTRALIA DOLLAR/BONDS (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Risk aversion sent the Aussie tumbling to 60.50 yen , from 64.39 late here on Wednesday, as the Japanese currency gained across the board on safe-haven flows.
* Aussie fell to $0.6370, from $0.6595 on Wednesday, as investors fled to the liquidity of short-term U.S. Treasuries. It also lost ground to the euro and Swiss franc.
* Australian bond futures benefited from the safe-haven flows and as gloomy global news reinforced expectations the Reserve Bank of Australia (RBA) would cut rates again aggressively in December, if not sooner.
* The market is now almost fully pricing in a cut of 100 basis points in December taking rates to 4.25 percent, which would be the lowest since late 2001. Further easing toward 3.5 percent is priced in for next year.
* Three-year bond futures jumped 0.165 points to
96.220, the highest in at least 16 years, while the 10
year contract climbed 0.155 to 95.065.
* Stocks on Wall Street sank over 5 percent after Best Buy warned of a bleak outlook and the U.S. Treasury backed away from a plan to buy distressed mortgage assets from banks. .
* Commodities took a beating with the CRB index losing 2.63 percent to 245.44, while oil dropped around 5 percent to $55.75 a barrel.
* Australia is a major exporter of resources, so falling prices and the risk of global recession have a big impact on the domestic economy.
* The only domestic data on Thursday are average weekly earnings, a series that rarely moves the market.
(Reporting by Wayne Cole; Editing by Jonathan Standing) Keywords: MARKETS AUSTRALIA DOLLAR/BONDS (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.