Australian dollar falls following Reserve Bank comments, share market has modest bounce back
The Australian share market has managed a modest bounce back from its recent losses, but the dollar has fallen sharply following comments from Reserve Bank governor Glenn Stevens.
The All Ordinaries index closed 37 points higher at 5,844 and the ASX-200 added 39 points, to 5,872.
The mining sector led the gains, aided by another modest rise on the Chinese benchmark iron ore price, to $US50.80 a tonne.
BHP Billiton rose 2.6 per cent, Rio Tinto 1.5 per cent and gold miner Newcrest 2 per cent while Fortescue missed out, falling 1.1 per cent.
The energy sector also slid, with Woodside falling 1.3 per cent.
Finance stocks rose modestly with NAB leading the major banks by adding two-thirds of a per cent.
The Commonwealth Bank rose 0.5 per cent and ANZ a third of a per cent while Westpac closed flat.
Telstra finished the day 0.3 per cent higher, Qantas climbed 1.5 per cent but was outdone by rival Virgin Australia's 2.9 per cent gain.
The Australian dollar is currently buying around 76.9 US cents, more than a cent lower than yesterday.
The currency fell on Reserve Bank governor Glenn Stevens' overnight speech in New York and lost further ground on the release of the minutes of this month's RBA board meeting, with expectations again rising of another cut to the official interest rate.
Mr Stevens said another cut has to be on the table, despite "rather exuberant" Sydney house prices.
Against the other major currencies the Australian dollar is buying 72.1 Euro cents, 51.8 British pence, 91.9 Japanese yen and 100.5 New Zealand cents.
Spot gold is trading at $US1194 US dollars an ounce.
West Texas crude oil rose overnight to $US56.32 cents a barrel, tapis crude in Singapore headed the same way to $US63.37 cents a barrel.