SYDNEY: The Australian stocks has pulled even further back from its pursuit of the key 6000 threshold, opening slightly lower as the benefits of improving commodity prices were more than offset by strong gains in the Australian dollar overnight.
At the 10.15am (AEST) official market open, the benchmark S & P/ASX200 index was 11.2 points, or 0.19 per cent, lower at 5937.3 points, while the broader All Ordinaries index was down 10.1 points, or 0.17 per cent, at 5911.4.
CMC chief market analyst Ric Spooner said investors would be assessing the conflicting influences of firmer commodity prices and a stronger Australian dollar at the beginning of the local session.
“The fact that the spot iron ore price has returned to within an ace of the $US60 a tonne level will be a supportive influence for mining stocks today,” he said.
“However, the big jump in the Aussie dollar is a negative.”
The currency’s strength is likely to be a factor today for stocks such as CSL, ResMed and Amcor that have been bought in expectation of an ongoing decline in the dollar, he said.
