Dollar tops US72c in late trade

The local unit has pushed ahead as higher commodity prices boost sentiment.

The Australian dollar has pushed back above US72 cents on the back of higher commodity prices as a risk rally sweeps Asia.

At 5pm AEST the local unit was swapping hands at 72.10c, before pulling back to US71.95c by 6.10pm -- still up from US71.83c at the same time on Tuesday.

A lift in commodity prices and a weaker US dollar benefited the Aussie, Commonwealth Bank chief currency strategist Richard Grace said.

Risk-driven equity rallies across Asia had also supported the currency.

“This has all suggested global economic activity might be a bit stronger than expected, hence that’s given the Aussie a bit of lift,” he said.

“It’s really those external factors, rather than domestic economic data.”

At 1700 AEST, the Australian dollar was at 79.23 Japanese yen, up from 78.37 yen on Tuesday, and at 64.64 euro cents, up from 63.96 euro cents.

Mr Grace does not expect domestic capital expenditure figures due for release in the US to have a major impact on the Australian dollar.

“That will have some influence, but I don’t think it’s going to be game changer.” Amid the risk rally, Australian bonds have fallen.

AAP