Greenback strengthens on tax talk

THE greenback has strengthened amid talks that US tax reform guidance is likely to be released before the end of September.

THE Australian dollar is back below 80 US cents, as the greenback strengthens amid officials’ talks that US tax reform guidance is likely to be released before the end of September.

At 0635 AEST on Thursday, the Australian dollar was worth 79.84 US cents, down from 80.28 US cents on Wednesday.

Westpac’s Imre Speizer says the US dollar had strengthened, along with US bond yields, as more US officials pointed to tax reform guidance in all likelihood, being released later in September.

“The US dollar index is up 0.7 per cent on the day ... (while the) AUD fell from 0.8044 to 0.7971,” he said in a morning note.

Australia’s jobs — or labour force — data are due out on Thursday, with the market expecting employment to increase by 20,000.

“However, the market sees unemployment steady at 5.6 per cent while Westpac forecasts a tick up to 5.7 per cent.” He said the Aussie dollar could slip further on Thursday “to 0.7950 if the US dollar’s multi-day rebound persists”.

Australian jobs and US CPI (inflation) data today will be key”. The Aussie dollar has also slipped against the yen but is higher against the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON THURSDAY

One Australian dollar buys:

* 79.84 US cents, from 80.28 on Wednesday

* 88.28 Japanese yen, from 88.39 yen

* 67.17 euro cents, from 67.04 euro cents

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

Originally published as Greenback strengthens on tax talk