SYDNEY, July 14 (Xinhua) — The Australian dollar has continued its stellar run on Friday, reaching a four month high as a weaker U.S. dollar, and higher commodity prices, drive up the local currency.
At the Asian open, one Australian dollar was buying 77.32 U.S. cents, up from the 77.11 U.S. cents it was trading at late Thursday.
The Australian dollar held onto its gains from Thursday, according to senior currency strategist at CommSec Elias Haddad, who told Xinhua on Friday that this was down to a “firming” of iron ore prices and a weak U.S. dollar.
“The Australian dollar will be driven by the U.S. dollar’s reaction to the U.S. June CPI report,” Haddad said.
“Slower U.S. June core CPI inflation, less than 1.7 percent, which we expect, can push the Australian dollar closer to 78 U.S. cents,”
“But, faster U.S. June core CPI inflation of more than 1.7 percent can drag the Australian dollar lower, towards 76.70 U.S. cents.” he added.
At 0830 (AEST), one Australian dollar is currently buying 77.30 U.S. cents, while crude oil is trading at 46.08 U.S. dollars per barrel.