Australian dollar lifts on oil output deal

The Australian dollar is edging up against the greenback after OPEC producers agreed to cut output.

The Australian dollar is edging up against the greenback after OPEC producers agreed to cut output.

At 6.35am (AEST), the local unit was trading at US76.93 cents, up from US76.85 cents yesterday.

JP Morgan strategists said a surprise deal by OPEC members meeting in Algiers to cut oil production had lifted the Aussie, petro currencies and high beta, or volatile, currencies in overnight trade.

“Crude was net up 5.7 per cent on the day, with most of the gains coming during the New York session,” they said in a note.

“Following the OPEC headlines, petro currencies and high beta rallied. The Canadian dollar, the Russian rouble, Norwegian Kronar and Australian dollar finished the session 0.9 per cent, 1.2 per cent, 0.8 per cent and 0.3 per cent higher.”

There are no major risk events for the Aussie dollar today.

AAP