At 6: 30am AEST on Friday, the Australian dollar was worth 80.48 US cents, up from 79.85 cents US on Thursday.
2017 high of 80.66 us cents was set up in July, which represents the dollar, the highest mark since the month of May 2015.
Westpac’s Imre Speizer said the US dollar, and europe, and US bond yields are lower, after the ECB comment that has not announced QE tapering.
“The ECB has kept its key rate unchanged, as it was planned, but has not announced changes to its programme of QE (which some in the market had expected),” Mr Speizer said in a morning note.
“(The president of the ECB Mario Draghi said that the ECB will decide on policy calibration for the next year in the fall, but not to develop.
The information boards at the Australian Securities Exchange (ASX) in Sydney. Picture: AAPSource:AAP
“Fed fund futures, yields have fallen, the price now is the time for a rate increase in December to 31% (down from 36% yesterday). It is difficult to know how much of that repricing is due to the ECB’s inspired by the falling yields rather than yesterday’s u.s. debt ceiling extension (which repels the trading of December, when the Fed is expected to hike).
“The US dollar index is down 0.8% on the day, at a low level in three years (when the) AUD rose from 0.7975 to 0.8045.”
The main event risk for the local currency, the Friday will be July housing finance data, with the Westpac economists were expecting a one per cent increase in the number of owner-occupier approvals.
He expected to see the Australian dollar move “more to test 0.8065 (a record set in July), as long as the dollar remains weak.”
The Australian dollar is also high against the yen and virtually unchanged against the euro.
TODAY, THE WATCH MARKET:
One Australian dollar buys: * 80.48 us cents, from 79.85 on Thursday
* 87.27 Japanese yen from 87.08 yen
* 66.92 euro cents, from 66.94 euro cents
(*Currency closes taken at 5pm AEST.