The Australian dollar has reached a fresh four month high on greenback weakness following the release of US Federal Reserve meeting minutes.
At 0700 AEST on Thursday, the local currency was trading at 93.91 US cents, up from 93.62 cents on Wednesday.
The Australian dollar reached 93.99 US cents at 0430 AEST – its highest level since November 19.
The fresh high came as the US dollar weakened further, following the release of minutes from the March meeting of the Federal Open Market Committee, BK Asset Management managing director Kathy Lien said.
“The minutes were dovish because several Federal Reserve officials felt that the official forecasts exaggerated the pace of tightening,” Ms Lien said.
“While we don’t believe the minutes alter the Fed’s course of tapering, it reinforces the notion that the Fed will remove stimulus slowly and cautiously, keeping rates low for an extended period of time.”
Ms Lien said the all-important Australian labour force figures for March, to be released on Thursday, would determine the local currency’s next step.
A weaker result could trigger profit-taking in the Australian dollar while a strong report could see the currency reach 95 US cents, she said.
AAP