The Australian dollar is flirting with the 75 US cent mark after continuing its slide against its steady US counterpart.
At 0635 AEDT on Friday, the Australian dollar was worth 75.08 US cents, down from 75.44 US cents on Thursday.
Westpac’s Imre Speizer says the US dollar initially extended its gains, along with US equities and oil in the US session.
‘The US dollar index initially rose to a two-week high but reversed in New York to be unchanged on the day,’ he said in a Friday morning note.
Mr Speizer said no major data overnight to drive the market but on Friday the key local event risk would be housing finance figures.
‘October housing finance is expected to show owner occupier approvals down 1.3 per cent.
‘Westpac sees a 3.0 per cent drop, with the potential for a move even lower in the value of investor loans after dropping 6.3 per cent in September.’
He thought it a real possibility that the local currency would hit or breach 75 US cents.
‘Momentum is negative following some AU data disappointments and USD gains. Immediate target 0.7500 if USD gains persist.’
The Aussie dollar is steady against the yen but down against the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON FRIDAY
One Australian dollar buys:
* 75.08 US cents, from 75.44 on Thursday
* 85.89 Japanese yen, from 84.88 yen
* 63.76 euro cents, from 63.98 euro cents
(*Currency closes taken at 1700 AEDT previous local session)