Aussie Dollar stable
At 0635 AEST on Thursday, the Australian dollar was worth 78.87 US cents, unchanged from Wednesday.
Westpac’s Imre Speizer said markets had retained a slightly risk-averse attitude following an escalation in tension between the US and North Korea. The US dollar had dropped slightly against a basket of major currencies, while the Australian dollar had moved in a tight range, he said.
“The US dollar index is down 0.1 per cent on the day,” he said in a Thursday morning note. “The AUD consolidated yesterday’s losses between 0.7860 and 0.7900.”
He thought the Australian dollar could easily continue its slide if its US counterpart resumed its recent upward path.
“The recent slide in the AUD could extend to 0.7835 (14 July high) if the US dollar rebound continues. Risk sentiment will also feature.”
The local currency is also flat against the yen but slightly lower against the euro.