Rising oil, copper and iron ore prices have helped push the Aussie dollar to a fresh 10-month high.
At 0700 AEST on Wednesday, the local unit was trading at 78.13 US cents, up from 77.96 cents on Tuesday.
The Aussie dollar rose to a 10-month high of 78.20 US cents in overnight trade.
Reports that Iran may be in a position to cut oil output with other producers to help support crude prices helped boost other commodities.
Westpac senior market strategist Imre Speizer said the currency was also being supported by copper prices, up 2.7%, and iron ore up 4.1%.
He said the weaker greenback had also lent support to the Australian dollar.
‘Daily momentum remains positive, and the latest phase of this multi-month rally doesn’t yet looked stretched,’ Mr Speizer said in a note.
‘Expect some congestion in the 78.50-79.40 US cent range.’
The main local risk event for the dollar on Wednesday is the March Westpac/Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future.
At 7am on Wednesday, 20 April one Aussie dollar was buying:
78.13 US cents, from 77.96 cents on Tuesday*
85.32 Japanese yen, from 84.95 yen
68.80 euro cents, from 68.76 euro cents
110.93 New Zealand cents, from 111.04 NZ cents
54.29 British pence, from 54.39 pence
*Currency closes taken at 1700 AEST previous local session
AAP
