Australian dollar steady ahead of Greek deadline
FIBO Group | Feb 23, 2015 07:54AM ET
The Australian dollar was trading higher today but then gave back most of the gains as caution spread that the agreement reached between the Eurozone ministers and Greece on Friday about an extension of the bailout deal was far from certain.
AT 11.37am (GMT) the Australian dollar was trading at US77.96c after reaching a high of US78.43c earlier in the day.
The Greek government now have until the end of Monday to draw up a list of reforms which they say will include a crackdown on tax evasion and more transparency from the country’s oligarchs.
"We are compiling a list of measures to make the Greek civil service more effective and to combat tax evasion," minister of state Nikos Pappas told Greek television network, Mega channel.
Even if all goes well some say the deal is a sinking ship and in the end Greece will never have the ability to fully repay their debts which will only cause further turmoil in the financial and currency markets.
Greek debt is not repayable in this life, Kingsley Jones, founder and CIO of Jevons Global, told CNBC on Monday: "We have to be realistic here. Greek debt is now 175 percent of gross domestic product (GDP); it's higher than it was when this whole business first started."
"Just look at Japan. It has government debt rapidly approaching 300 percent of GDP. One day, that debt pile simply implodes. It is not ever going to be repaid, nor will the Greek debt. There is no use standing on the high moral ground," Jones said.
The Aussie dollar may sit tight as the market awaits key data later in the week from the US such as the latest speech from Fed president Janet Yellen for a direction on US interest rates and the wage price index from Australia which may provide some clues on Australia’s deteriorating unemployment rate.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.