(Australian Associated Press)
The rising price of Australia’s largest export commodity, iron ore, has boosted the Australian dollar.
The local unit was trading at 74.32 US cents at 1700 AEDT on Wednesday, up from 74.02 US cents on Tuesday.
The price of iron ore rallied seven per cent to $US75.50 overnight, while other metals, particularly copper, also rose in value.
Those price rises have temporarily offset the impact of an ongoing surge in the US dollar, sparked by Donald Trump’s election victory and expectations of a US interest rate rise in December.
“Clearly, the Aussie outperformance can be attributed squarely to commodity performance,” OANDA Australia and Asia Pacific senior currency trader Stephen Innes said.
But he said the local currency may continue to come under pressure, with little economic news on Wednesday and US markets currently impacted by this week’s Thanksgiving holiday.
“Let us not get ahead of this current move … this could be just a temporary reprieve from a surging US dollar,” Mr Innes said.
CURRENCY SNAPSHOT AT 1700 AEDT ON WEDNESDAY
One Australian dollar buys:
* 74.32 US cents, from 74.02 cents on Tuesday
* 82.51 Japanese yen, from 82.04 yen
* 69.92 euro cents, from 69.63 euro cents
* 59.90 British pence, from 59.22 pence
* 105.17 New Zealand cents, from 104.64 NZ cents
The spot price of gold in Sydney at 1700 AEDT was $US1,211.99 per fine ounce, down $US6.01 from $US1,218.00 on Tuesday.
* CGS 5.25pct March 2019, 1.815pct, up from 1.799pct on Tuesday
* CGS 4.25pct April 2026, 2.649pct, from 2.613pct
Sydney Futures Exchange prices:
* September 2016 10-year bond futures contract was at 97.335 (implying a yield 2.665 per cent), down from 97.36 (2.64 per cent) on Tuesday.
* September 2016 3-year bond futures contract was at 98.12 (1.88 per cent), down from 98.15 (1.85 per cent).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)