The Australian dollar on the back of higher commodity prices as a risk-averse mood about the US presidential election weighs on greenback.

At 0701 AEDT on Thursday, the local unit was trading at 76.50 US cents, up from 76.31 cents on Wednesday.

Westpac senior market strategist Imre Speizer said the only reason the greenback didn’t slide further was US Federal Open Market Committee’s statement after deciding to keep interest rates on hold.

He said the US policy makers made positive comments about the labour market “continuing to strengthen” and activity picking up from “the modest pace seen in the first half” of 2016.

“The weaker US dollar plus high iron and coal prices should underpin the Australian dollar today, supported at 76 US cents with potential to break above 79.90 cents,” Speizer said.

The main risk event for the local currency on Thursday is the release of the official trade figures for September.

AAP

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