The Australian dollar has extended the gain it enjoyed from November’s better-than-expected retail trade figures.
At 0635 AEDT on Friday, the Australian dollar was worth 78.92 US cents, up from 78.74 US cents on Thursday.
Local retail sales rose 1.2 per cent to $26.4 billion in November, seasonally adjusted, beating the 0.4 per cent rise economists had predicted.
It is the third consecutive month of growth following a rise of 0.5 per cent in October and 0.2 per cent in September.
Meanwhile, the US dollar has weakened following a fall in US producer prices.
The US dollar index, which measures the greenback against six rival currencies, was down 0.57 per cent at 91.808, after falling to a near-one-week low 91.808.
The greenback extended losses after data showed US producer prices fell for the first time in nearly one-and-a-half years in December amid declining costs for services.
Weak inflation at the producer level could add to concerns that the factors restraining inflation could become more persistent and result in the Federal Reserve being more cautious about raising interest rates in 2018, Reuters reported.
While the Aussie dollar was strong against the US dollar, it has fallen against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON FRIDAY
One Australian dollar buys:
* 78.92 US cents, from 78.74 on Thursday
* 87.66 Japanese yen, from 88.04 yen
* 65.55 euro cents, from 65.87 euro cents
(*Currency closes taken at 1700 AEDT previous local session)