Aust dollar steady at 74 US cents

(Australian Associated Press)

The Australian dollar is hovering at 74 US cents, due to support from stronger commodity prices.

At 1200 AEDT on Wednesday, the local unit was trading at 74.03 US cents, virtually unchanged from 74.02 US cents on Tuesday.

The price of Australia’s largest export, iron ore, rallied seven per cent, or $US5.00, to $US75.50 overnight, while the price of other metals, particularly copper, also rose.

The benefit of higher commodity prices has temporarily offset the ongoing surge in the US dollar, OANDA Australia and Asia Pacific senior currency trader Stephen Innes said.

“Clearly, the Aussie outperformance can be attributed squarely to commodity performance,” he said.

CURRENCY SNAPSHOT AT 1200 AEDT ON WEDNESDAY

One Australian dollar buys:

* 74.03 US cents, from 74.02 cents on Tuesday

* 82.28 Japanese yen, from 82.04 yen

* 69.69 euro cents, from 69.63 euro cents

* 59.68 British pence, from 59.22 pence

* 104.84 New Zealand cents, from 104.64 NZ cents

BOND SNAPSHOT

* CGS 5.25pct March 2019, 1.815pct, up from 1.799pct on Tuesday

* CGS 4.25pct April 2026, 2.637pct, from 2.613pct

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract was at 97.340 (implying a yield 2.660 per cent), down from 97.360 (2.640 per cent) on Tuesday.

* September 2016 3-year bond futures contract was at 98.120 (1.880 per cent), down from 98.150 (1.850 per cent).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS

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