The Australian dollar was more than one US cent higher following the release of disappointing US manufacturing figures.
At 7am AEST the currency was at 97.70 US cents, up from 96.46 US cents at yesterday’s local close.
Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar had benefited from weakness in the greenback following the release of the US manufacturing figures.
The closely-watched ISM Manufacturing Index showed the US manufacturing sector in May contracted at the fastest pace in four years.
Mr Speizer said the figures reduced the likelihood the US Federal Reserve would start to wind back its asset-buying program at its next board meeting, which prompted a sell-off in the US dollar.
“That lifted all major currencies against the US dollar,'' Mr Speizer said.
Mr Speizer said the key local event for the currency today would be the Reserve Bank of Australia's monthly interest rate decision, to be announced at 2.30pm AEST.
The central bank is expected to keep the cash rate on hold at 2.75 per cent so, barring any surprises, Mr Speizer said, the Australian dollar should be able to push above 98 US cents during the session.
