Aussie dollar sharply higher

THE Australian dollar is sharply higher against its US counterpart and comfortably back above 75 US cents.

THE Australian dollar is sharply higher against its US counterpart and comfortably back above 75 US cents. At 0635 AEST on Tuesday, the Australian dollar was worth 75.26 US cents, up from 74.90 US cents on Monday.

Westpac’s Imre Speizer said that while the US dollar index had been little changed and had stayed within a week-old narrow trading range overnight, the Australian dollar had risen from a low of 74.80 US cents to a high of 75.40. All eyes would now be on the Reserve Bank of Australia’s interest rate announcement at 1430 AEST, he said.

“The RBA policy decision is expected to be on hold,” he said. “The minutes to the April meeting singled out labour and housing markets as key areas being monitored closely. The stronger-than-expected jobs gains in March and new macroprudential measures have further cemented the Bank’s ‘on hold’ position.”

But, he did not expect the Australian dollar to bounce that much. “The bounce off the 0.7450 area should be limited to 0.7600 (US cents).” The local currency is also higher against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON TUESDAY

One Australian dollar buys:

* 75.26 US cents, from 74.90 on Monday

* 84.155 Japanese yen, from 83.76 yen

* 69.06 euro cents, from 68.81 euro cents

(*Currency closes taken at 1700 AEST previous local session)

Originally published as Aussie dollar sharply higher