Westpac's Imre Speizer said the Australian dollar had hit a two-year high overnight while minor tweaks to the Federal Reserve's position on inflation and tapering prompted a sharp fall in the US dollar.
... the local currency came close to cracking the 80 cent barrier several times before retreating to around 79 US cents. The RBA has been vocal about its concerns that the Australian dollar is too high for some time. This is particularly because it ...
The Australian dollar's climb above US80 cents for the first time since 2015 was driven by a collapse in the greenback after dovish statements from the US Federal Reserve, according to chief market strategist at AxiTrader, Greg McKenna.
Also helping underpin demand for the Australian dollar has been a solid performance in commodities. Oil is trading near eight-week highs, with brent, the global benchmark, topping $US50 a barrel overnight.
The Australian dollar joined the euro on Thursday at a more than two-plus year high against the US dollar after the Federal Reserve signalled it was ready to start reducing its balance sheet “relatively soon”.