THE Australian dollar closed higher after taking its lead from rebounding share markets in the Asian region.
At 5pm (AEDT), the Australian dollar was trading at $US0.9009/13, up 0.05 per cent from Wednesday’s close of $US0.9005/07.
Between 7am and 5pm today, the local unit traded between $US0.8931 and $US0.9026.
CMC Markets foreign exchange dealer Jian Wei said the local currency rebounded in line with Asian and domestic share market today.
Asian stocks rose for the first time in nine days and the US dollar gained on signs profits are recovering and the US Federal Reserve will reduce stimulus measures as the American economy recovers.
“The Aussie dollar moved back above 90 US cents on the back of the overall Asian market rebound,” Mr Wei said.
He said the local currency took its lead from Japan and Hong Kong where domestic share markets rebounded nearly 2 per cent, while the Australian bourse was also firmer.
Japan’s Nikkei average rose 1.3 per cent today, with upbeat reports on profits at Honda Motor and Sony Corp adding to momentum from strong earnings at other big name stocks such as Canon.
Mr Wei said the gains helped to support high-yield currencies such as the Australian dollar but there was still uncertainty in the market.
“There has been a sell off on stockmarkets in the last few days, so the market will still be very cautious,” he said.
He predicted the local currency would stay around the 90 US cent range in overnight trade as traders examined whether falling metal prices had reached the bottom.
