The Australian dollar is higher against its US counterpart which itself has risen following strong economic data.
At 0635 AEDT on Wednesday, the Australian dollar was worth 75.57 US cents, up from 75.36 US cents on Tuesday.
Westpac’s Imre Speizer says risk sentiment in markets remains positive.
He said November’s US Producer Price Index rose 0.4 per cent, against an expected 0.3 per cent, for a year on year pace of 3.1 per cent, versus the expected 2.9 per cent.
‘The core measures were 0.3 per cent and 2.4 per cent. There will be some hurricane effects in these numbers, and they may start to unwind in December,’ he said in a Wednesday morning note.
‘The US dollar index is up 0.3 per cent on the day (and the) AUD rose from 0.7520 to 0.7580 before the firm USD dragged it lower to 0.7546.’
He said the key local event risks included speeches and panel participation by Reserve Bank governor Philip Lowe, assistant governor (Financial Markets) Christopher Kent and RBA Head of Payments Policy Tony Richards.
Also, markets would have an eye on the Westpac-MI Consumer Sentiment data.
‘(It) previously fell to 99.7 in November after a brief stint in October above 100 at 101.4 in October.
(The consumer mood has been downbeat over most of 2017.’
He expects the Aussie dollar to form ‘a near-term base above 0.7500’.
The local currency is also higher against the yen and the euro on Wednesday morning.
CURRENCY SNAPSHOT AT 0635 AEDT ON WEDNESDAY
One Australian dollar buys:
* 75.57 US cents, from 75.36 on Tuesday
* 85.85 Japanese yen, from 85.50 yen
* 64.42 euro cents, from 64.01 euro cents
(*Currency closes taken at 1700 AEDT previous local session)