Category: News

Australian dollar goes under US 80 cents for first time since 2009

Australian-dollar-goes-under-US-80-cents-for-first-time-since-2009-659065-lThe Australian dollar went under US 80 cents this morning for the first time in five-and-a-half years.
AAP reports that the dollar fell as low as US 79.96 cents this morning and was trading at US 80.05 cents at 8:30 am, following the announcement of a 60 billion Euro per month stimulus package announced by the European Central Bank.
The dollar had weakened on Wednesday from US 82.13 to 80.81, reported Fairfax, following a surprise cut in the Canadian interest rate by the Bank of Canada and a drop in that country’s currency.
“The BoC decision has relevant parallels to Australia – namely, a commodity-centric economy with growth slightly below-trend and an inflation pulse that is providing space for some additional easing,” Daniel Been, senior currency strategist at ANZ Bank, told Fairfax at the time.
There were predictions the Australian dollar would head under US 80 cents following the announcement of quantitative easing by the European Central Bank to deal with the region’s weak economy.
European growth is under one per cent and unemployment is at 11.5 per cent.
The bond buying program was worth 60 billion Euro a month until the end of September next year, the ECB’s president Mario Draghi said. This was slightly larger than the 50 billion Euro a month predicted ahead of Draghi’s announcement, according to AAP.

Read more at http://www.ferret.com.au/articles/news/australian-dollar-goes-under-us-80-cents-for-first-time-since-2009-n2520321#557UJMIVihz13RRP.99

ESCO Corporation Adds Foundries In Australia, New Zealand

ESCO Corporation, an Portland, OR-based manufacturer of castings for industrial products used in the resources, infrastructure, power generation, and transportation markets, has purchased two foundries that will pace its expansion into Australia and New Zealand.

Austcast Pty Ltd, located in Brisbane, Australia, and its Dunedin, New Zealand-based subsidiary Newlcast, were acquired in efforts to “strengthen ESCO’s product offerings and expansion efforts” by providing local foundry capacity, according to a release.

Austcast manufactures high-integrity steel and specialized alloy irons for the mining, rail, and general engineering industries. As part of ESCO, Austcast will continue to manufacture rail products and will “adjust operations in 2011 to include ESCO’s industry-leading ground engaging tools and other mining and construction wear parts,” according to the announcement marking the acquisition.

The foundry in Brisbane includes molding, melting and heat treating capabilities, as well as a pattern shop and non-destructive testing. Newlcast supplies ferrous castings, a variety of steels, and alloy irons. Both sites employ nearly 100 workers.

The addition of these foundries is another step in ESCO’s efforts to permeate the markets just this year, the company explains. In July, ESCO acquired Swift Group, a designer and producer of mining, infrastructure, and agricultural products with locations in Brisbane, Mackay, and Kingaroy. In October, ESCO selected Mine & Quarry Service Company Pty as its distributor in the region.

“Our acquisition of Austcast is a key development in ESCO’s plan to establish a national sales, supply chain, and manufacturing network in Australia, and will further our efforts to deliver quality, value, and speed to our customers on a global scale,” stated Cal Collins, president of ESCO engineered products.