The Aussie dollar has been pushed higher following a surge in global oil prices.
At 0700 AEDT on Friday, 26 February the local unit was trading at 72.41 US cents, up from 71.84 cents on Thursday.
BK Asset Management’s managing director of FX strategy Boris Schlossberg said swings in crude prices have been driving the whole commodity currency complex up and down.
‘Oil turned around post-London close. That provided a boost for everybody across the board,’ he said.
‘The Canadian dollar is very strong and it’s lifting the Kiwi dollar and Aussie dollar in sympathy gains.’
Crude oil prices have jumped more than 2%, supporting the Aussie dollar despite a 6% slide in Chinese equities on Thursday.
But, Mr Schlossberg warns that once the situation calms down and oil stops being the primary driver of asset classes there’ll be little reason to be bullish on the Aussie.
He said the slowdown in commodity demand from China will present considerable obstacles for policy makers.
AAP
