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Dollars pushes past 94 US cents

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The Australian dollar has reached a fresh four-month high on greenback weakness following the release of US Federal Reserve meeting minutes.

Early Thursday, the local currency was trading at 93.91 US cents, up from 93.62 cents on Wednesday.

The Australian dollar reached 93.99 US cents overnight – its highest level since November 19.

It hit another high after the release of better than expected national jobs figures.

Australia’s unemployment rate fell to 5.8 per cent in March, and the number of people with jobs rose 18,100 in the month.

Economists had expected total employment to fall by 5,000 in March, and an unemployment rate of 6.1 per cent.

The Australia dollar was worth 94.38 US cents at 1135 AEST, up from 93.85 US cents just before the data was released, and its highest level since November 2013.

The fresh high came as the US dollar weakened further, following the release of minutes from the March meeting of the Federal Open Market Committee, BK Asset Management managing director Kathy Lien said.

“The minutes were dovish because several Federal Reserve officials felt that the official forecasts exaggerated the pace of tightening,” Lien said.

“While we don’t believe the minutes alter the Fed’s course of tapering, it reinforces the notion that the Fed will remove stimulus slowly and cautiously, keeping rates low for an extended period of time.”

Lien said the all-important Australian labour force figures for March could see the currency reach 95 US cents, she said.

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