The Australian dollar has traded higher today, rebounding following several days of weakness.
At 7am AEDT the currency was trading at 104.36 US cents, up from 104.06 cents at yesterday’s local close.
Westpac New Zealand senior market strategist Imre Speizer said the currency gained ground overnight, without any economic data to explain the move. He said the gain likely was a correction after recent selloffs that saw the currency fall as low as 103.80 US cents yesterday.
“It is slightly curious the Aussie rebounded to the extent it did,'' he said. “But there has been a good week of selling for the Aussie, so perhaps this is nothing more than that phase wearing out a little bit.''
Mr Speizer said today’s release of Chinese manufacturing figures, which are expected to show a continued resurgence in the key sector, should help boost the Australian dollar during the local session.
He said the release of US non-farm payrolls figures tonight would also be a key driver for the currency.
