Dollar wakes up higher

THE dollar was higher this morning, on the back of encouraging Australian investment data and a higher oil price.

THE dollar was higher this morning, on the back of encouraging Australian investment data and a higher oil price.

At 7am AEDT today, the local unit was trading at 100.97 US cents, up from 100.60 cents yesterday.

Since 5pm AEDT, the Australian dollar traded between 100.01 US cents and 101.24 US cents.

Oil prices are trading up around $US100 a barrel as anti-government clashes in Libya intensify with rebels controlling much of the eastern part of the country.

Libya is the world's 15th largest exporter of crude oil, producing two per cent of global output.

Capital expenditure data released on Thursday showed Australian is in the midst of a strong surge in business investment and it is expected to continue to stay strong.

ANZ senior markets dealer Alex Sinton said the Australian dollar was pushed up by the higher oil price but yesterday's capex figures also helped its rise.

"In a sense it is the stronger euro and the oil price that is certainly helping it," he said from Auckland.

"There was also a bit of focus on the investment intentions out of Australia.

"I think that story may have dropped off the top rung but it is certainly a focus in terms of the foreign exchange market.

"When you get the investment intentions, it's certainly a strong sign as far as the economy goes and people are still reasonably bullish as far as the Aussie dollar goes."

Mr Sinton said the focus on the market will continue to be on the unrest in Libya and whether Libyan President Muammar Gaddafi will last the weekend.

"That is certainly a key driver as far as things go, there were rumours out recently that he had been shot," he said.

"The US government has come out and said there is no reason to believe that he is dead, but it has pushed the Aussie and the euro up a little bit and brought up oil prices slightly."

Mr Sinton said he expected the Australian dollar to trade in a range between 100.70 US cents and 101.25 cents today.

CURRENCY TABLE: Currency snapshot at 0700 AEDT

CURRENCY SPOT PREVIOUS CLOSE

AUD/USD 1.0095-98 1.0059-61 

AUD/JPY 82.53-56 82.49-55 

AUD/EUR 0.7310-16 0.7299-05 

AUD/NZD 1.3494-03 1.3469-76 

AUD/GBP 0.6252-58 0.6194-00 

EUR/USD 1.3806-08 1.3773-78 

USD/JPY 81.75-76 82.02-05 

EUR/JPY 112.86-90 112.98-00 

(*Closes taken at 1700 AEDT previous local session)

Sourcedata: IRESS