Aussie dollar surges to two year high

Aussie dollar surges to two year high

The Aussie dollar has jumped more than 1.3 per cent, hitting a two year high.

The Aussie’s surge saw it beating US78¢ for the first time since May 2015 on the back of the greenback sinking to a fresh 10-month low after gauges of US inflation and retail sales fell short on estimates.

The Australian dollar briefly hit a high of .7834 during Friday’s session. That’s just a fraction below the high of .7835 stuck in 2016. At .7828, Australian dollar had its highest close since May 20, 2015.

The surge in the Aussie corresponds with a fall in the US dollar.

Earlier in the week, a mix of dovish commentary from US Federal Reserve Janet Yellen, strong domestic and Chinese economic data and gains in commodity prices had pushed the greenback higher.

But on Friday, the US dollar sank to its lowest point in 10 months with soft data on retail sales and inflation subduing expectations of a third interest rate increase in 2017.

Bloomberg data shows the dollar index, measuring the greenback against a basket of peer currencies, fell 0.6 per cent on Friday, taking it to 95.15, its lowest point since late September.

 



An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.