The Australian dollar is back on the ascendancy after its US counterpart weakens, pressured by a rebound in commodity-linked currencies.
At 0635 AEST on Monday, the Australian dollar was worth 74.39 US cents, up from 79.04 US cents on Friday.
Westpac analysts say the Australian dollar had fared well amid a jump in oil prices.
‘Oil prices jumped 4 per cent after an OPEC agreement to raise output less than feared. That appeared to help commodity currencies AUD and NZD outperform,’ they said in a note.
‘The US dollar index fell 0.4 per cent on Friday. EUR rose from 1.1620 to 1.1675. USD/JPY ranged sideways between 109.80 and 110.20, the yen the worst G10 performer. …AUD was the best G10 performer, rising from 0.7400 to 0.7444.’
Adding to pressure was US manufacturing data.
‘US manufacturing PMI (Markit) fell 1.8 points, to a weaker-than-expected 54.6 – its lowest level this year,’ the analysts said.
‘The softer read comes after the surprisingly weak June Philly Fed survey (-14.5pts to 19.9), pointing to a loss of momentum in US manufacturing in June.’
With no major domestic event risk on the horizon, the Westpac analysts believe the local currency could maintain its positive momentum on Monday.
‘Following a three cent decline this month, a rebound to 0.7500 is possible if global risk sentiment remains supportive.’
The Aussie dollar is also higher against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEST ON MONDAY
One Australian dollar buys:
* 74.39 US cents, from 74.04 on Friday
* 81.71 Japanese yen, from 81.38 yen
* 63.76 euro cents, from 63.62 euro cents
(*Currency closes taken at 1700 AEDT previous local session)