THE NEWS WRAP: Aussie dollar hits new record high

There is a $4.3 billion hole in the NSW Government’s budget, according to State Treasury, a situation that could threaten its AAA credit rating.

Treasury officials told incoming NSW Premier Barry O’Farrell that a surplus of $432 million in 2012-13, which was projected in a December half-year review, had turned into a $405 million deficit. O’Farrell accused the previous Labor State Government of “deception” over the issue. 

Feathers set to fly over chicken price war

Chicken looks set to be the next price battleground between the major supermarkets, after Coles’ chief executive indicated that it will be heavily discounted.

Speaking to a senate inquiry originally set up to look at the impact of cheap milk on the dairy industry, Ian McLeod said: “”The latest product to have prices reduced as part of our Down Down campaign is fresh Coles chicken and we have more price cuts planned in the next few weeks.”

Dollar hits new record high

The Australian dollar has continued on its record run, smashing through the 103 US cent barrier to its highest level since it was floated in 1983.

Boosted by Australia’s trade links with China and its rapid economic recovery, the dollar is predicted to hit 105 US cents within months.

Overnight

The Dow Jones industrial average was down 22.71 points to 12,197.88. The Australian dollar, as indicated above, hit a record high of 103.14 US cents.