Robust Australian dollar keeps on climbing

THE Australian dollar is again at parity with the US greenback thanks to lower-than-expected US growth figures.

Once again, the Aussie has bounded past the US greenback.

THE Australian dollar is again at parity with the US greenback thanks to lower-than-expected US growth figures.

Reduced tensions on the Korean Peninsula also helped the Aussie's charge.

The $A1 was fetching $US1.003.

The US Government announced that its economy grew at a 2.6 per cent annual rate during the July-September quarter, while the market had expected growth of 2.8 per cent.

Another boost came from reduced international tensions as North Korea failed to retaliate against South Korean military drills.

"So far there is a relative calm on the Korean Peninsula but there is still a focus on the eurozone crisis," Forecast senior currency analyst Lee Wai Tuck said.

"If there is anything sensitive in the euro crisis, there will be more pressure on the euro and to a certain extent the Aussie will be under pressure as well."

Analysts say the US greenback could strengthen next year if the debt woes in Europe continue, which is not good news for the Australian unit.

In times of crisis investors flee to the security of the US dollar.

The Australian dollar has risen 20 per cent since the middle of the year against the US dollar and foreign exchange analysts are increasingly worried the new year could provide a pretty serious sell-off.

"I don't think we'll get much higher than this and we might go down to US93 in three months," said Gareth Berry, director of foreign exchange strategy for UBS in Singapore.

"The US dollar will strengthen on US bond yields, which have risen and will rise some more. And I expect more eurozone issues will lead to even more US dollar strength and an uptick in risk aversion."

HiFX trading director Mike Hollows said the local currency was helped yesterday by a positive commodity market.

He said the local currency was a "shining star", despite some uncertainty.

Meanwhile the New Zealand dollar was yesterday trading at 10-year lows against the Australian dollar, fetching about 74c.

- with AGENCIES