Australian dollar gets a boost from rise in metals prices

THE Australian dollar is higher, thanks to a rebound in gold and copper prices.

THE Australian dollar is higher, thanks to a rebound in gold and copper prices.

THE Australian dollar is higher, thanks to a rebound in gold and copper prices.

At 0630 AEDT on Thursday, the local unit was trading at 89.87 US cents, up from 89.53 cents on Wednesday.

Traders are waiting for an expected announcement from the Reserve Bank of New Zealand (RBNZ) that it will raise its Official Cash Rate (OCR), which would be its first change in three years. ThinkForex senior markets analyst Matt Simpson said an RBNZ rate hike would see the New Zealand dollar rally against the Australian dollar.

"With the Australian economy continuing to look weak and the possibility of further interest rate cuts, this will continue to apply downwards pressure on the Australian dollar against the New Zealand dollar," he said.