Pound High Against Australian Dollar

Published on June 30, 2010 by admin · No Comments

High Yielding Currencies

Sterling Exchange Rates to reach multi month highs against the Australian Dollar and rise significantly against the New Zealand Dollar and South African Rand due to the worldwide move to risk aversion also showed in the commodity markets with oil falling over 3% to under $76 a barrel but gold reaching a new high of $1245 per troy oz.

In the US, the Conference Board corrected its leading economic index for China to an April gain of 0.3% from a previously reported rise of 1.7%, a sharp revision that undermined confidence in China’s ability to sustain strong growth.

The correction prompted investors to turn against riskier assets, adding to a global sell-off. The Shanghai composite index fell 4.3 percent to a new 14-month low.

“The hint of moderation is what alarmed markets as it comes in the context of fragile U.S. and European economies at the time we look to Asia as the global economic savior,” said Peter Boockvar, equity strategist at Miller Tabak + Co in New York.

The CBOE volatility index VIX, known as Wall Street’s fear gauge, rose 16% to a session high of 34.69, its highest level since early June.