Greenback falls to six-month lows

THE Australian dollar is firmly higher against its US counterpart as the US dollar index falls to its lowest level in six months.

THE Australian dollar is firmly higher against its US counterpart as the US dollar index falls to its lowest level in six months.

At 0635 AEST on Monday, the Australian dollar was worth 74.51 US cents, up from 74.29 US cents on Friday.

Westpac’s Imre Speizer said the Australian dollar had lifted as high as 74.70 US cents and he expected it to lift further over the next one to three months. “The modestly weaker-than-expected Australian CPI outcome has added yet another factor capping the A$: softer commodity prices; a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect,” he said in a note on Monday.

“These leave the A$ with strong resistance at 0.76.” A key risk factor was Reserve Bank of Australia assistant governor Guy Debelle gives a speech at the BIS Symposium in Basel, Switzerland early Tuesday morning (AEST).

The local currency is also higher against the yen but down against the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON MONDAY

One Australian dollar buys:

* 74.51 US cents, from 74.29 on Friday

* 82.74 Japanese yen, from 82.65 yen

* 66.56 euro cents, from 66.77 euro cents

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

Originally published as Greenback falls to six-month lows