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Market Update

Australian Dollar Slides, RBA Lowers Inflation Outlook

Author: Marcus Jacob
Last Update: 7:57 AM ET May 10 2013

5:00 PM Sydney Australian dollar traded lower after Reserve Bank of Australia held its economic growth outlook and lowered its inflation estimate. Indexes rallied following a surge in Asian markets.

Australian stocks surged at the opening after a rally across Asian markets and mining and energy companies led the gainers.

The ASX 200 index at the open jumped 0.8% in heavy volume and built more advance in the afternoon.

Investors were positive ahead of Federal Budget Tuesday despite a cautionary tone from Reserve Bank of Australia on the peak in mining sector investment.

The central bank also lowered its inflation outlook to 2.25% from 3% in the fiscal 2013 and reaffirmed economic growth to remain near 2.5% in the period.

The ASX 200 index edged up 7.70 to 5,206.10 and the broader All Ordinaries rose 10.50 to 5,191.10.

For the week ASX 200 gained 1.5%.

Australian dollar closed down to $1.008 against the U.S. dollar and in stock trading turnover down to 724 million worth $4.8 billion.

Stocks in Review

Rio Tinto added 25 cents to $58.45 and BHP gained 21 cents to $34.75.

Woodside Petroleum Limited rose 27 cents to $37.24.

David Jones Limited slid 2 cents to $2.88 and Breville Group increased 10 cents to $7.20.

Woolworths added 9 cents to $34.70.

Mirvac Group closed unchanged at $1.75. Lend Lease climbed 24 cents to $11.11.

Westpac slipped 40 cents to $32.95, Commonwealth fell 0.7% to $70.57 and National Australia Bank lowered 0.6% to $32.47 and ANZ dropped 1.5% to $30.13.

ANZ Banking Group dropped 46 cents to $30.13 after the bank lowered its variable home loan rate by 27 basis points after the Reserve Bank of Australia cut the official cash rate by 25 basis points on May 8.

Qantas Airways Limited closed unchanged at $1.82 after the Middle East based partner Emirates reported fiscal year end net profit increased by 52% and passenger traffic jumped to 16%.

Aquila Resources Limited slid 2 cents to 2.22 after the mining explorer lodged insurance claim of $94.4 million for property damage and business interruption caused by flooding at the mine for the Isaac plains coal mine.

Aquila already sold its 50% stake in the Queensland mine in the last year.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc