Dollar bounces back

 

dollar in the boxThe Australian dollar has followed metal prices and Wall Street higher, bouncing from the record lows it reached after the US Federal Reserve meeting.

At 0700 AEDT on Friday, the local unit was trading at 81.57 US cents, up from 81.35 cents on Thursday.

On Thursday morning, the currency fell as low as 81.07 US cents, after the US Federal Reserve upgraded its economic forecast, saying unemployment will drop to 5.2 per cent.

Bank of New Zealand currency strategist, Raiko Shareef, said most currencies went in the opposite direction to that on Thursday.

“The US dollar has had a mixed performance overnight, after posting strong gains immediately after the Federal Open Market Committee meeting,” he said.

“The Australian dollar has lifted from post-FOMC lows.”

Shareef says it’s unlikely the Australian dollar will rise above 82 US cents in the coming days because when it reaches that is the level many traders start selling it to lock in profits.

On Friday markets will be interested in the release of the Commonwealth Bank business sales indicator for November.

AAP

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