PERTH: The Australian dollar surged back above US70¢ on the back of a stabilisation in Chinese, European and US stock exchanges as well as a minor pick up in commodity prices.
After getting a boost from improved business confidence numbers on Tuesday afternoon, the dollar continued to rise overnight, hitting a high of 70.37 US cents. The local currency has established a new trading range in the past week, staying between US69¢ and US70¢.
Capital Economics said stabilised equity markets, falling petrol prices and ongoing resilience in the labour market was likely to maintain business conditions into the next few months, keeping the dollar supported in its current range.
