$A rates high on world stage By Geoffrey Newman December 05, 2003 The Australian
.............. The October trade deficit narrowed further than expected, new data showed yesterday, from $2.25 billion to $1.65 billion as exports grew and imports fell and visitors spent up during the Rugby World Cup.
But despite, or because of, the dollar's relentless rise, talk is increasing of a potential sharp fall in the local currency, especially if US economic data shows surprising strength.
FxMax chief strategist Clifford Bennett said the possibility that US President George W. Bush was about to scrap US steel tariffs (an announcement was expected overnight) was potentially a major turning point for the greenback.
"For some time now it has been near impossible to find a bearish angle on the Australian dollar," Mr Bennett said.
"All the news has been so positive ... it is reasonable to expect that just about everyone who wants to buy has done so."
