The Australian dollar has recouped some losses as the greenback slides.

At 0630 AEST on Friday, the local unit was trading at 74.95 US cents, up from 74.88 cents on Thursday.

“The rise in gold and decline in the greenback helped the Australian dollar recoup part of yesterday’s losses,” BK Asset Management’s Kathy Lien said.

The falls were sparked by expectations of a rate cut in New Zealand, adding to speculation that Australia’s central bank would follow suit.

BBH currency strategists said expectations that next week’s second quarter inflation report will not stand in the way of the Reserve Bank cutting its rate has weighed on the Aussie.

“The market is discounting around a 60 per cent chance of a cut next month,” they said.

Westpac strategist Imre Speizer tipped the currency to remain in a neutral state near term, hovering between 74.50 US cents and 75.20 US cents.

AAP

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