aussie dollar rising fast abc online

The Australian dollar continues to gain ground against a weakening US dollar, reaching a 20-month high overnight.

Weaker economic figures released in the US have sent the American dollar to a 14-year low against the pound Sterling and a 20-month low against the euro.

As a result, the Australian dollar has been pushed up as far as 79.04 US cents, its highest level against the greenback since March last year.

At 8:14am AEDT it was being quoted at 78.86 US cents, up one-third of a cent on the night.

It is at 0.5955 euros, 91.28 Japanese yen, 40.12 pence sterling and $NZ1.153.

A firmer dollar puts pressure on Australian exporters and makes it more difficult for domestic companies to compete against imports.

US economy weakens

Meanwhile, views on the outlook for the US economy remain a day-to-day proposition.

The gloss has come off again overnight, with the latest data mostly disappointing.

American equity markets have been indecisive.

After yesterday bumping up its estimate of overall economic growth, the US Commerce Department has now issued figures showing a slower-than-forecast increase in personal incomes during October.

Consumer spending in the month has been subdued but slightly better than expected.

There has been a sharp jump in new claims for unemployment benefits in the latest week.

And the National Association of Purchasing Management Chicago business activity measure has indicated the first contraction in three-and-a-half years.

On Wall Street, supermarket firm Wal-Mart's confirmation of its first monthly drop in sales for more than a decade has also weighed heavily.

But on the New York Stock Exchange, the Dow Jones industrial average has closed just five points lower at 12,222.

The high-tech Nasdaq composite index is down half-a-point at 2,432.

London's FT100 index has fallen 36 points to finish at 6,049.

Australian boost

Yesterday, the Australian share market hit a record high.

The All Ordinaries index gained 29 points to finish at 5,462.

BHP Billiton shares rose 38 cents to $26.23, while Woodside Petroleum added $1.04 to $37.56.

Following trade overnight on the Sydney Futures Exchange, the Share Price Index 200 contract has closed up seven points at 5,472.

The 10-year bond contract is up two-and-a-half points at 94.44, with the implied yield easing 5.56 per cent.

The gold price has jumped to $US648 an ounce.

The spot price of West Texas crude oil is up another 52 cents to $US62.97 a barrel.

Dave R.