Aussie dollar breaks 66 US cents, ASX rebounds
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The news: The Australian dollar is at its highest level in nearly three months, as the greenback fell to its weakest level over the same period. The Australian sharemarket finished higher, the benchmark ASX 200 gaining 0.4% and recovering some of yesterday's losses to close at 7,015.20.
The numbers: By sector, energy stocks fell 1% as Woodside took a 1.4% hit. Real estate stocks gained 1.5%, with Scentre closing 2.4% higher. Weaker than expected new homes sales data and growing expectations of Federal Reserve rate cuts next year weighed on the greenback, bringing the DXY dollar strength index as low as 103.08, its lowest level since 31 August. A Deutsche Bank report predicted a mild recession for the world's biggest economy, along with 175 basis points in rate cuts in 2024, Reuters reports.
The context: The ABS will release inflation data for the 12 months to October tomorrow at 11:30am AEDT. Overnight there will be a barrage of central banker appearances and speeches, including European Central Bank president Christine Lagarde and Federal Reserve governor Christopher Waller. Harvey Norman, Lynas Rare Earths and NRW Holdings will hold AGMs tomorrow, with Liontown Resources to follow on Thursday.
