Dollar almost back at 80 US cents

THE Australian dollar has crept higher against its US counterpart, recouping a little of its loss following weaker-than-expected economic growth figures.

THE Australian dollar has crept higher against its US counterpart, recouping a little of its loss following weaker-than-expected economic growth figures and gains in the greenback.

At 0635 AEST on Thursday, the Australian dollar was worth 79.98 US cents, up from 79.81 US cents on Wednesday.

Westpac’s Imre Speizer said the US dollar, along with bond yields and equities rose in the offshore session in response to the extension of the US debt ceiling and government spending until December.

“The US dollar index is up 0.1 per cent on the day, after recovering from earlier rumours on European Central Bank tapering timing,” he said in a morning note. “AUD was choppy, ranging between 0.7965 and 0.8016.”

The main event risk for the Australian currency on Thursday would be the July retail sales data and the trade balance for the same month.

“July retail sales are expected by Westpac and the market to rise 0.2 per cent ... July trade balance is expected to be +$0.9bn. Westpac forecasts a greater surplus of 1.4bn with a lift in commodity prices boosting exports while imports decline on a higher AUD.”

But, he still expects the 80 US cent mark will remain a tough barrier to breach. “The 0.8000 resistance area remains sticky.” The Aussie dollar is also higher against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON THURSDAY

One Australian dollar buys:

* 79.98 US cents, from 79.81 on Wednesday

* 87.41 Japanese yen, from 86.73 yen

* 67.10 euro cents, from 66.94 euro cents

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

Originally published as Dollar almost back at 80 US cents