Dollar boosted by gold prices


dollar,goldThe Australian dollar is higher, getting a boost from a one per cent rise in the gold price and a better outlook for the Chinese economy.

At 0700 AEST on Thursday, the local unit was trading at 93.54 US cents, up from 93.14 cents on Wednesday.

The price of gold in Sydney was $US1,305.64 per fine ounce, up $US14.14 from Wednesday’s local close of $US1,291.50.

BK Asset Management MD, Kathy Lien, said it was a good night for the Australian, New Zealand and Canadian dollars.

“The Australian economy, in general, seems to be holding up well, thanks in large part to the recovery in China,” she said.

“Reports that government stimulus and resurgent demand for Chinese exports is paving the way for a summer rebound is also positive for Australia’s economy.

“The Australian dollar was supported by the rise in gold prices but traders are also positioning for a stronger employment report.”

Official jobs figures for July are due out on Thursday with the unemployment rate expected to stay steady at six per cent.

The number of people with jobs in Australia is expected to rise by 12,000 in July, according to an AAP survey, after a gain of 15,900 in June.

“Stronger job growth should drive the Australian dollar above 93.50, while weaker numbers could drive it towards 92.50,” Lien said.


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