Greenback strengthens on tax talk

At 0635 AEST on Thursday, the Australian dollar was worth 79.84 U.S. cents, down from 80.28 cents u.s. on Wednesday.

Westpac’s Imre Speizer said the US dollar has strengthened, with US bond yields, as more and more US officials have stressed the reform of the tax guidance, in all likelihood, will be published later in September.

“The US dollar index is up 0.7% on the day … (while the) AUD has fallen 0.8044 at 0.7971,” he said in a morning note.

Australia employment — or labour force — the data are to be published this Thursday, with the market expecting employment to increase by 20 000.

“However, the market sees the unemployment stable at 5.6 per cent, while Westpac forecast a tick up to 5.7 per cent.” He said the Australian dollar could slip further Thursday “at 0.7950 if the dollar to multi-day rebound persists”.

Australian jobs and the CPI (inflation) data today will be key.” The Australian dollar has also slid against the yen, but higher against the euro.


One Australian dollar buys:

* 79.84 cents of the united states, from 80.28 Wednesday

* 88.28 yen from 88.39 yen

* 67.17 euro cents from 67.04 cents

(*Currency closes taken at 1700 AEST previous local session)