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Australian dollar edges higher in early trade

Xinhua, May 17, 2017 Adjust font size:

The Australian dollar crept slightly higher against the U.S. greenback on Wednesday as speculator concerns continue as to the ability of the Trump administration to pass fiscal stimulus measures.

At the Asian open, one Australian dollar was buying 74.30 U.S. cents, up a touch from the 74.24 U.S. cents it was trading at on Tuesday.

Elias Haddad, senior currency strategist at the Commonwealth Bank, told Xinhua in a statement that the rise in the Australian dollar against its U.S. counterpart overnight was due to a lift in iron ore prices and perceived weakness in the U.S. dollar.

Haddad also outlined the key economic indicators due to be released at 1130 local time AEST on Wednesday that will likely influence the value of the local currency in the short term.

The Australian dollar focus on Wednesday will be Australias first quarter wage price index. Wages growth remains soft due to elevated levels of labor market underutilisation, and low inflation pressures more generally, Haddad said.

The economist went on to specify that a result in wage growth that falls below 1.9 percent will have a detrimental impact on the value of the Australian dollar against the U.S. currency moving forward.

At 0830 local time AEST, one Australian dollar bought 74.29 U.S. cents, while crude oil was trading at 48.30 U.S. dollars per barrel. Endit