The Australian dollar has again fallen against its US counterpart after Thursday recouping some of its previous day’s losses.
At 0635 AEDT on Friday, the Australian dollar was worth 75.63 US cents, down from 75.90 US cents on Thursday.
Westpac’s Imre Speizer says sentiment has been upbeat in the US with wall Street’s S&P500 up more than one per cent to a fresh record high amid optimism that the proposed tax reform could soon pass the Senate.
‘ US 10-year treasury yields rose from 2.36 per cent to 2.44 per cent – a one-month high, and two-year yields rose from 1.76 per cent to 1.79 per cent,’ he said in a morning note.
‘Fed fund futures yields continued to price the chance of a December rate hike at 100 per cent.
‘Economic data released was okay but had little impact. Rather, it appeared to be a headline that previously undecided senator McCain would now vote yes for the tax reform bill which moved bond yields.’
However, the US dollar slipped slightly while the Australian dollar ranged sideways and the euro lifted on Brexit negotiations improvement – but sterling was the standout.
‘The US dollar index is down 0.1 per cent on the day. EUR rose from 1.1809 to 1.1931 amid signs of improvement in negotiations on the Brexit divorce bill (GBP was the best performing currency yesterday).
‘AUD eked a sideways range of 0.7557-0.7595.’
Local event risks for the Aussie were CoreLogic’s November home value index is expected along with the Ai Group’s manufacturing PMI.
Mr Speizer said the local currency on Friday likely would continue to be rangebound ‘between 0.7530 and 0.7645’.
The Aussie dollar is up against the yen but down against the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON FRIDAY
One Australian dollar buys:
* 75.63 US cents, from 75.90 on Thursday
* 85.16 Japanese yen, from 85.099 yen
* 63.56 euro cents, from 63.97 euro cents
(*Currency closes taken at 1700 AEDT previous local session)