At noon (AEDT) on Thursday, the currency was trading at 71.37 US cents, up from 70.52 cents on Wednesday.

Westpac senior currency strategist Sean Callow says the dollar is rising on the back of European stock rises and as the greenback slumps US Federal Reserve chair Janet Yellen’s push back on talks of rate rises.

“The US dollar and bond yields are just cratering at the moment,” he told AAP.

“The Aussie is outperforming most major currencies, with the only the yen ahead.”

Callow forecast the local unit to continue to trade between 71.00 and 71.51 US cents in afternoon trade.

“I think it will consolidate at some in this range,” Callow added.

“But probably with a higher bias.”

At 8.27am (AEDT) on Thursday, the share price futures index was up 20 points at 4,730.

Locally, no major economic news is expected on Thursday.

In equities news, Rio Tinto is slated to post full year results while Cochlear, Suncorp, Transurban, Mirvac, ASX, Tassal Group and Goodman Group are all expected to release half year results.

The Australian dollar has risen against the greenback after US Federal Reserve chair Janet Yellen’s Congressional testimony.

The local unit was trading at 71.07 US cents, up from 70.52 cents on Wednesday.

And the Australian share market looks set to open higher following mostly gains on Wall Street after Federal Reserve Chair Janet Yellen’s comments eased investor concerns about the capacity of the economy to absorb a gradual rise in interest rates.

NEW YORK – Wall Street has closed mixed after comments by Federal Reserve Chair Janet Yellen eased investor concerns about the capacity of the economy to absorb a gradual rise in interest rates.

The Fed expects economic growth to pick up in the current quarter, which would allow it to pursue its plan of “gradual” adjustments to monetary policy, she said.

Fears of a China-led global economic slowdown and oil’s steep slide since the Fed raised rates in December have dampened the market’s expectations for a hike in coming months.

“What Yellen said has been taken positively,” said Richard Sichel, chief investment officer of Philadelphia Trust Co in Philadelphia.

“Stocks in general are cheaper now than they were three days ago or three months ago, so there’s an opportunity to step in.”

LONDON – Britain’s top share index has moved higher, led by financial stocks as banks recovered some ground on bargain-hunting after three straight sessions of losses.

Gains were curtailed after Federal Reserve Chair Janet Yellen said the Fed should be able to gradually adjust monetary policy thanks to strength in the US economy, despite growing concerns over global growth.

“Financial stocks in general are finding some support after the torrid start to the week, but this looks more like opportunistic bargain hunters dipping a toe in the water rather than a wholesale shift in sentiment,” said Tony Cross, analyst at Trustnet Direct.

HONG KONG – Asian stocks fell on growing concerns about the health of the world’s banks, particularly in Europe, pushing investors into safer assets such as the yen, which stood near a 15-month high versus the US dollar.

The adoption of negative interest rates by the Bank of Japan has provided no support, and the index has dropped more than 10 per cent since the central bank’s surprise easing on January 29.

The Chinese markets are closed this week for the Lunar New Year holidays.

“Concerns about European banks are contributing to the risk off mood in markets. In addition, US data this month has been weak and Fed officials appear to be toning down on rate hikes,” said Shinichiro Kadota, chief FX strategist at Barclays in Japan.

WASHINGTON – Tightening financial conditions driven by falling stock prices, uncertainty over China and a global reassessment of credit risk could throw the US economy off track from an otherwise solid course, Federal Reserve Chair Janet Yellen says.

LONDON/ROME – Europe’s top four economies suffered steeper drops in industrial output during December than any analyst had forecast, a grim sign for the global economy as it struggles to sustain momentum.

LONDON – Japanese brewer Asahi has tabled a 2.55 billion euro ($A4.08 billion) bid to buy European lager brands Peroni and Grolsch being put up for sale as part of the takeover of SABMiller.

ENERGY

Brent crude prices have risen but US crude, or WTI, prices have fallen in choppy trade, a day after one of the biggest declines since the 2008 financial crisis.

Brent was up 79 US cents, or 2.61 per cent, at $US31.11 a barrel, at 0752 Thursday AEDT. WTI was down 30 US cents, or 1.07 per cent, at $US27.64 per barrel.

PRECIOUS METALS

Gold prices has stabilised below a seven-and-a-half-month high after US Federal Reserve Chair Janet Yellen said that only “gradual” adjustments to monetary policy are likely and stressed that global headwinds could hurt US growth.

In her first testimony to Congress since the December rate rise, Yellen said that tightening financial conditions and uncertainty over China pose risks to the US recovery, but chances are slim the Fed would need to reverse the rate tightening cycle.

“The short-term trend is on the upside for gold after Yellen’s reference to gradual rate increases going forward,” said ActivTrades’ chief analyst Carlo Alberto de Casa.

“We do not expect a rate hike before June, but the focus on financial conditions suggest that the bar for a rate hike has risen,” said Maritza Cabezas, senior economist for ABN Aero.

BASE METALS

Copper slid to a two-week low, pressured by a stronger US dollar as Federal Reserve Chair Janet Yellen pointed to the prospect for further gradual adjustments to monetary policy.

Also weighing on the market were worries about the euro zone banking sector, which have rekindled fears over the state of the global economy this week.

The US dollar index climbed from nearly four-month lows after Yellen suggested in testimony to Congress that the US central bank had not taken a March interest rate increase off the table.

“If the Fed hikes further this year, this will also increase pressure on the Chinese currency and … on copper,” Danske Bank analyst Jens Pederson said.

ASX stocks to watch Thursday, February 11

ASX – ASX: ASX is expected to post half-year results on Thursday.

COH – COCHLEAR: Cochlear is slate to release half-year results.

GMG – GOODMAN GROUP: Goodman Group is expected to post half-year results on Thursday.

MGR – MIRVAC: Mirvac is schedule to post half-year results on Thursday.

RIO – RIO TINTO: Rio Tinto is slated to post full year results.

SUN – SUNCORP: Suncorp is expected to release half-year results.

TCL – TRANSURBAN: Transurban is expected to post half-year results on Thursday.

TGR – TASSAL GROUP: Tassalis is slated to release half-year results on Thursday.

AAP