Australian dollar rebounds

dollar-25The Australian dollar has bounced back overnight and is higher against the US dollar which has preserved its recent gains but made little headway.

At 0635 AEST on Thursday, the local currency was worth 75.15 US cents, from 74.84 cents on Wednesday.

The Australian dollar weakened in overnight trade on Tuesday and briefly fell to a low of 74.47 US cents after the release of March quarter wage data that showed weaker-than-expected growth, which confirmed views that the Reserve Bank will leave interest rates on hold for a prolonged period.

It later on Wednesday recovered slightly and continued to trend higher overnight to hit a high of 75.23 US cents.

Recent gains in US bond yields and the US dollar were preserved overnight, but Westpac’s Imre Speizer says they did not make much of a headway.

He said the Australian dollar is consolidating between 74.50 US cents and 75.50 cents, ahead of the Australian jobs data which could deliver a surprise and impact the local dollar.

The local currency has also lifted against the yen and the euro, which was the worst performer overnight, falling to a five-month low amid tensions between Italy’s potential populist coalition government and the Eurozone.

One Australian dollar buys 82.916 Japanese yen, from 82.47 yen and 63.64 euro cents, from 63.21 euro cents.


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