The Australian sharemarket bounced higher today, following local bourses up after the US released positive jobs data.
At 2.40 pm, the ASX200 was up 1.2% to 4272.2 while the broader All Ordinaries index gained 1.16% to 4292.3.
Tim Waterer, senior trader at CMC Markets, said higher commodity prices provided a boon for Australia’s miners.
“BHP and Rio Tinto both did a u-turn from Friday’s performance, while the banks and retailers also enjoyed a run higher with investors feeling decided rosier over the global state of play.”
One exception to this was Harvey Norman. It’s shares fell 1.2% after the retailer warned its full-year profit is likely to fall up to 40%.
The Australian dollar climbed even higher today, buying $US.105665.
“The US jobs numbers reignited a rally in all things ‘risk’, with the Australian Dollar (AUD) being one of the currencies best placed to prosper from the subsequent surge in equity markets and commodities,” Waterer said. “The AUD has so far stopped short of hitting 1.06 against the US however a move beyond this level could eventuate this week if the RBA signal a reluctance to move lower on rates and if domestic employment data on Thursday justifies a ‘wait and see’ mentality by the central bank.”
“Conceivably the [$US value of the $AU] could reach 1.0670 in the coming days. Much will hinge on how long traders remain enamoured with the latest US employment figures.”
Myriam Robin is a reporter for SmartCompany and its sister site LeadingCompany. She has degrees in economics, international studies and journalism. She likes writing about businesses taking risks and doing new things.
