The Australian dollar is close to 106 US cents after touching a near four-month high in offshore trading on the back of a stronger gold price, a rally on equity markets and positive comments from the European Central Bank (ECB).
At 7am AEDT the Australian dollar was at 105.95 US cents, about half a US cent higher from yesterday’s local close of 105.49 US cents. During the overnight session, the Australian dollar reached 105.99 US cents, its highest level since September 14, 2012, when the currency touched 106.24 US cents.
The local currency's latest surge began on yesterday when the Australian dollar rose about half a US cent after China posted a larger-than-expected trade surplus for December.
There was further positive news for the Australian dollar in the offshore session, as Wall Street rallied and futures contract prices for gold gained 1.4 per cent to $US1678 per fine ounce.
The currency was also boosted by comments from ECB president Mario Draghi after the central bank meeting overnight.
