The Australian dollar is surging ahead today as traders moved back into riskier commodity based currencies which also included the Canadian dollar
At 9.35am (GMT) the Aussie dollar was trading at US74.40c after breaking through US75c earlier in the trading session.
A dovish tone after the latest interest rate decision from the RBA as well as expectations that the US Federal reserve will hold off lifting interest rates for the nearest future have increased the appetite for the Australian dollar and helped it make a stunning reversal.
The Aussie is now trading at its highest level in over a month.
The country’s biggest commodity, Iron ore also pushed higher overnight following in the footsteps of oil which also continued to climb.
“Higher commodity prices, led by further gains in oil prices above US$51 per barrel, have supported AUD,” said Richard Grace, chief currency strategist at the Commonwealth Bank.
“Base metal and iron ore prices also moved higher overnight. Recovering commodity prices, leading into a stabilization and modest increase in Australia’s terms of trade, are one of the key reasons we are not bearish AUD/USD.”
With no major data heading into the weekend the Australian dollar is likely to make another run for the US75c mark to finish off the week strongly.