The S&P/ASX 200 dropped 16.50 points or 0.24% to close at 6,971.60 on Monday. Surgical glove maker Ansell dived 24% to a 22-month low of $23.76 after releasing a trading and business update to the ASX that slashed FY22 earnings guidance by 25% as disruption to the supply chain, resetting demand, operational challenges and a weaker than expected first half hit the personal protection company. Shares ended the day down 13.7%.
Commonwealth Bank analyst Kim Mundy is forecasting the Australian dollar to stay below US70c in the short term, “possibly as low as US68.23c”.
The Aussie dropped below US70c to its weakest level in 18 months last week as the US dollar strengthened as the market priced in a hawkish US Federal Reserve stance on monetary policy.
The Reserve Bank of Australia board meets on Tuesday at 2.30pm AEDT.
The RBA is expected to end its 15 month-old quantitative easing program, and upgrade its inflation forecasts at Tuesday’s meeting, setting the scene for an interest rate rise as soon as the third quarter, based on economist forecasts.
China is celebrating Lunar New Year holiday this week. Markets there are closed for the five-day event.
Oil continues to push higher ahead of an OPEC and allies meeting this week and the threat of war, with the build-up of 100,000 Russian troops near Ukraine's border.
The Aussie dollar is at US70.10c against the US dollar.
Bitcoin is at $US36,830.
Gold is at $US1787.37 an ounce.
Brent crude oil is trading around $US90.12 a barrel.
WTI crude oil is at $US88.17 a barrel.
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