The Australian dollar has surged more than one-and-a-half US cents higher from Thursday’s low point, as the US dollar lost ground against all the major currencies.
At 0700 AEST on Friday, the Australian currency was trading at 97.52 US cents, up from 96.23 cents at Thursday’s close.
It was up 1.58 US cents from its low of 95.94 US cents on Thursday afternoon, the Australian dollar’s weakest level since early June 2012.
BK Asset Management managing director Kathy Lien said the Australian dollar’s recovery was due to the greenback’s weakness.
“Investors had been gradually increasing their exposure to (US) dollars since the beginning of the month and when they de-levered, they sold the greenback,” she said from New York.
“The weakness in the US dollar had nothing to do with fundamentals as economic data from the US surprised to the upside.
“Jobless claims dropped more than expected, house prices increased and new home sales beat the market’s forecast.”
Ms Lien said the Australian dollar fell sharply on Thursday after the release of the weak HSBC Chinese manufacturing figures but started to recover as European markets opened and the rally continued into the North American session.
