THE Australian dollar has jumped sharply higher in a morning of volatile trading.
The currency hit a two-and-a-half year low of 94.35 US cents shortly after midnight AEST before staging an impressive recovery. It climbed almost two-and-a-half cents to a high of 96.74 US cents, before dropping the best part of one US cent.
At 6.30am AEST the currency was trading at 95.96 US cents, well up from 94.79 US cents at yesterday's local close.
"It was extremely volatile. It jumped more than two US cents, which is huge,'' Westpac New Zealand senior market strategist Imre Speizer said.
Mr Speizer said the most likely catalyst for the move was a press conference from European Central Bank (ECB) president Mario Draghi. Mr Draghi indicated the ECB had no intention of implementing further stimulus measures to support the eurozone economy at this stage.
