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Posted: 2016-05-26 22:52:08

Australian Dollar Bills Isolated On WhiteThe Australian dollar is strengthening on pessimism about a US rate hike in June.

At 0700 AEST on Friday, the local unit was trading at 72.24 US cents, up from 71.95 cents on Thursday.

Westpac senior market strategist Imre Speizer said the Australian dollar had benefited from markets starting to downplay the chances of an imminent US interest rate hike.

“The US dollar and US interest rates fell as markets pared expectations for a Fed rate hike in June,” Speizer said in a note.

“The stalled US dollar should allow the Australian dollar to bounce further to 72.60 US cents today,” he said.

Speizer said the only minor risk event for the currency on Friday was an appearance by Reserve Bank assistant governor for financial markets Guy Debelle on a panel about foreign exchange markers in New York.

Speizer said internationally, US Federal Reserve president Janet Yellen was due to comment, which would grab market attention.

AAP

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