Australian dollar slides

dollar14Overnight volatility in global oil markets and continuing anxiety surrounding the major banks have pushed the Australian share market into further negative territory.

At 1200 AEST on Tuesday, the benchmark S&P/ASX200 was down 0.79 per cent as energy, banking and resource stocks fell, while weaker than expected balance of payments data pushed the Australian dollar lower.

The dollar dropped from a morning high of 74.9 US cents to be trading at 74.67 US cents at 1200 AEST.

Uncertainty lingers across banking as housing market weakness, further capital requirements expected from the banks regulator, and the proposed $6.2 billion banking levy continue to weigh on the sector.

The big four banks were between 0.79 and 1.15 per cent lower at 1200 AEST.

Weaker commodity prices have impacted the major materials stocks, with BHP Billiton recovering some ground to be 0.76 per cent lower after dropping more than one per cent overnight.

Concerns that a growing political rift between Qatar and several of its partner Arab states will undermine OPEC’s tightening of the market are dragging the oil market down, with the energy sector recording the biggest decline in morning trade.

Australian Bureau of Statistics data showed Australia’s current account deficit was $3.11 billion in the March quarter, down from a deficit of $3.51 billion the previous quarter but a hit to growth from lower exports pushed the dollar lower.

AAP

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