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Aussie dollar creeps up against $US

dollar24The Australian dollar is slightly higher against the greenback after the US tax reform bill – which will slash US company taxes – was passed by the US Senate.

At 0635 AEDT on Thursday, the Australian dollar was worth 76.66 US cents, up from 76.61 US cents on Wednesday.

The US dollar fell against most currencies except the Japanese yen, on expectations the tax bill’s upside impact on the greenback has been factored into the market.

The tax reform package – which earlier had already passed the US House of Representatives – includes a cut in the US company tax rate from 35 per cent to 21 per cent.

The dollar index fell 0.2 per cent against a basket of six major currencies, in turn pushing gold prices higher, while US bond yields also lifted.

Westpac’s Imre Speizer said the US dollar had remained subdued.

“The US dollar index is 0.2 per cent lower on the day,” he said in a Thursday morning note.

“(The) AUD nudged higher from 0.7660 to 0.7679.”

He said there was no local event risk on the horizon on Thursday for the local currency, which could well move higher on the day.

“(If it) retains upward momentum, the next technical target is 0.7695 (a Dececember 15 high), as long as the USD remains restrained.”

The Aussie dollar is also higher against the yen but lower against the euro.

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