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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (1482)	5/3/2000 1:58:00 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 33421

I'm more upbeat on the AUD. It's my single best currency idea at the moment. news.ft.com _____________________________ Australia raises interest rates By Shawn Donnan in Sydney Published: May 3 2000 03:10GMT \| Last Updated: May 3 2000 03:24GMT The Reserve Bank of Australia (RBA) raised interest rates on Wednesday by 0.25 percentage points as a result of rising inflation and a domestic currency languishing near 20-month lows against the US dollar. The increase in the benchmark rate to 6 per cent marks the fourth tightening in monetary policy by the RBA in six months. Economists believe the bank could not afford to wait, especially as the recent weakening of the Australian dollar has been blamed in part on the interest rate differential with the US. The RBA said it saw increased wages pressure on inflation and also noted that the Australian dollar had fallen further since earlier this year when it said the currency was already undervalued. ?While some indicators of domestic demand suggest that growth rates have moderated from the very high rates in the second half of 1999, the Australian economy is benefiting from stronger exports and rising terms of trade,? the bank said. The Australian dollar rose slightly following the announcement while bonds weakened. The currency had anticipated the increase on Tuesday, recording its biggest one-day gain in almost three months.