The Australian dollar is holding near one-month highs, aided by a rally in iron ore and coal prices and broad declines in the US dollar after its strong gains over the last few months.
The Aussie stands at US73.77¢, after popping up to US73.85¢ overnight, its highest since December 14. It is up 2.1 per cent in January so far, having earlier notched three consecutive months of declines.
The currency was helped by gains in iron ore and coking coal – the country’s top export earners. Iron ore futures jumped 8 per cent to the strongest in more than three weeks on Tuesday, with coking coal climbing nearly 8 per cent.
“Provided commodity prices remain on the boil, we may see further momentum in the Aussie, but more so on the crosses,” said Stephen Innes, senior currency trader at CFD and FX provider OANDA Australia and Asia Pacific.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.