Community | October 13, 2010 | 5 comments

Dollar hits new high as gold price soars

source: http://www.abc.net.au/news/stories/2010/10/14/3037856.htm?section=justin

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The Australian dollar hit a new post-float record of 99.37 US cents overnight as it tracked the soaring gold price.

At 7:20am AEDT it had eased back to 99.02 US cents. On the cross-rates, it was worth 80.94 Japanese yen, 62.40 British pence, 71.02 euro cents and $NZ1.30.

Meanwhile, better than expected corporate earnings and positive data out of China lifted the mood among investors on Wall Street overnight.

China says its foreign exchange reserves have jumped by a record amount, while a 25 per cent increase in exports lifted its trade surplus and boosted hopes it will continue to drive the global recovery.

Corporate profits from JP Morgan and Intel came in better than expected, however shares dipped after having rallied in recent weeks.

The standout report came from railroad operator CSX. Its shares jumped close to 5 per cent after the result.

The Dow Jones Industrial Average closed up 75.68 points to 11,096.08. The S&P 500 Index finished 8.33 points higher at 1,178.10.

The Nasdaq gained 15.70 points to end the day at 2,057.25.

Strength in mining stocks sent the British share market to a five-month closing high.

The major companies in the sector such as Anglo American saw their shares rise by more than 5 per cent on strong gains in base metals prices and hopes for another round of US stimulus.

London's FTSE 100 Index gained 85.76 points to 5,747.35.

Australian shares look set to follow those strong offshore leads. On the futures markets, the ASX SPI 200 was up 30 points to 4666.

Gold has continued its climb, hitting a new record of $US1375 an ounce overnight. Spot gold was at $US1371.80.

West Texas Crude oil was higher at just over $US83.03 a barrel and the price of a barrel of Tapis was up at $US90.47.
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