Dollar higher

The Australian dollar is a quarter of a US cent higher, helped by some positive European economic data and higher metals prices. euro coins in a row

At 0700 AEST on Thursday, the local unit was trading at 91.23 US cents, up from 90.98 cents on Wednesday.

Since 1700 AEST on Wednesday, the currency has traded between 90.81 and 91.58 cents.

Economic growth in the euro zone was 0.3 per cent in the June quarter, the first positive number in 18 months, EuroStat data showed overnight.

OM Financial senior client adviser Stuart Ive said those figures seemed to be one of the main things pushing the Australian dollar higher.

“It’s really the broad aspect of a bit of growth being shown, especially from Europe,” he said from Wellington.

“Europe is slowly getting itself out of recession, but it is more of an early sign.

“Commodities are up a little bit. Certainly, the metals are going a bit better. Copper and iron ore are both higher.

“All those factors benefit the Australian dollar.”

Ive said the Australian dollar was also being supported by a rising New Zealand dollar, which was the strongest performer among the major currencies overnight. The kiwi dollar’s surge came after it was announced that New Zealand retail sales rose 1.7 per cent in the June quarter.

Ive said markets would be awaiting the release of US industrial production figures for July, due out on Thursday night, Australian time.

He expects the Australian dollar to trade in a range between 91.00 and 91.58 cents on Thursday.


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