The Aussie dollar was being supported by rising commodity prices, iron in particular, which has jumped to a 10-month high of $US60 a ton.
Surging iron ore and commodity prices could maintain support for the Aussie dollar and help it above the 78 US cent level.
At 0700 AEST on Thursday, the local unit was trading at 77.97 US cents, up from 77.86 cents on Wednesday.
The Aussie dollar rose to a fresh 10-month high of 78.28 US cents in overnight trade.
Westpac senior market strategist Imre Speizer said the Aussie dollar was being supported by rising commodity prices, iron in particular, which has jumped to a 10-month high of $US60 a tonne.
‘Daily momentum (for the Aussie dollar) remains positive, nearby support at 77.70 US cents,’ Mr Speizer said in a note.
‘Multimonth, we expect the US dollar to eventually find its feet and help drag the Australian dollar lower.
‘However, over the next month, the US Fed’s cautious stance is likely to continue weighing on the US dollar, posing upside risks for the Australian dollar.’
The main local risk event for the Aussie dollar on Thursday is the National Australia Bank’s business confidence survey.
At 7am on Thursday, 21 April one Aussie dollar was buying:
77.97 US cents, from 77.86 cents on Wednesday*
85.64 Japanese yen, from 84.78 yen
69.02 euro cents, from 68.57 euro cents
111.75 New Zealand cents, from 111.18 NZ cents
54.39 British pence, from 54.20 pence
*Currency closes taken at 1700 AEST previous local session
AAP
