Aussie dollar hits fresh nine-month high as $US erodes

Aussie one dollar coins
ID:4843541

The Aussie dollar has soared to new heights as the greenback loses ground for a third straight day.

At 0700 AEDT on Friday, the local unit was trading at 76.67 US cents, up from 76.47 cents on Thursday.

The Aussie dollar soared to 77.23 US cents overnight, the highest level since last July.

Meanwhile, the US dollar index fell to a new six-month low as the effects of US central bank boss Janet Yellen’s dovish speech linger.

That’s despite an upbeat Chicago manufacturing report, Westpac economists said.

‘These PMIs perfectly capture the dissonance many feel around Yellen, the chair fretting about global risks on the one hand yet on the other, the US PMIs suggesting global risks are moderating,’ they said.

Westpac economists tipped the Aussie dollar to consolidate gains ahead of a key US jobs report on Friday night (AEDT), barring a surprise from China’s manufacturing reports during the day.

OANDA Australia and Asia Pacific senior trader Stephen Innes said the high-risk US non-farm payrolls report is a potential data point minefield for the Aussie.

Mr Innes said that with recent Fed speak emphasis on payrolls data, any significant fall from the expected 205,000 in jobs growth would hurt the greenback.

‘A fall towards the 150,000 level should send the US dollar into a tailspin,’ he said.

At 7am on Friday, 01 April one Aussie dollar was buying:

* 76.67 US cents, from 76.47 cents on Thursday*

* 86.28 Japanese yen, from 85.86 yen

* 67.36 euro cents, from 67.56 euro cents

* 110.89 New Zealand cents, from 110.92 NZ cents

* 53.36 British pence, from 53.33 pence

*Currency closes taken at 1700 AEDT previous local session

AAP