Australian dollar boosted by commodity prices

Financial and commodity markets analytics

The Australian dollar is trading higher today, rising back through the US72c mark on the back of stronger commodity prices.

AT 4.21pm (AEDT) the Aussie dollar was fetching US72.22c, up from US71.90c in yesterday’s trade.

Iron ore, Australia’s biggest export is trading back above US$40 a tonne, after falling to a record low of US38.40 earlier in the month, marking its highest level in nearly 3 weeks.

Oil prices also received a significant boost, jumping to US36.04c a barrel and up more than US$2 from yesterday’s trading session.

The world’s most popular commodity reached an 11 year low yesterday of US34.04c a barrel before rebounding as bargain hunters stepped in..

With no local data due out of Australia today the Aussie dollar may find it difficult to find direction and hold onto its gains with all eyes on the commodities markets for signs of further increases, which may help underpin the local currency.

With the first interest rate hike now out of the way from the US Federal Reserve Analysts are now speculating when the next move may come With Fed president Janet Yellen noting that future rate rises would be gradual and data dependent

The first real test will be later today, with the release of the latest quarterly GDP figures from the US, followed by the durable goods figure due out on Wednesday.

If the numbers come in above expectations, rate hikes in the US may come a little sooner than expected.



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