The Australian dollar is a tad lower against its US counterpart which has continued to weaken.
At 0635 AEDT on Friday, the Australian dollar was worth 79.33 US cents, down slightly from 79.37 US cents on Thursday.
Westpac’s Imre Speizer says while US equities have continued to recover, the same couldn’t be said for the US dollar whose continued weakness has helped the Australian dollar.
“The US dollar continued to weaken, boosting the likes of AUD and NZD. The USD index is 0.4 per cent lower on the day,” he said in a morning note.
“(The) AUD initially rose to 0.7967 before retracing to 0.7892.”
It has since regained much of the lost ground.
The main event risk for the local currency on Friday would be Reserve Bank of Australia governor Philip Lowe’s half-yearly testimony to federal parliament at 0930 AEDT, although, Mr Speizer said, it was unlikely to hold any surprises.
“After his policy statement, speech and the SoMP (Statement of Monetary Policy) last week, the testimony is unlikely to carry new information, though the Q&A may be interesting.”
Mr Speizer said he thought the Australian dollar was likely to fall a little and “find support around 0.7890”.
The Aussie dollar is lower against both the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON FRIDAY
One Australian dollar buys:
*79.33 US cents, from 79.37 on Thursday
* 84.36 Japanese yen, from 84.55 yen
* 63.46 euro cents, from 63.67 euro cents
(*Currency closes taken at 1700 AEDT previous local session)