Lacklustre dollar hangs onto gains
The Australian dollar marked time during the local session after traders overseas pushed it to a fresh one-week high overnight in response to brighter consumer confidence data.
In late trade, the currency was buiying 103.50 US cents, up from up from 103.39 cents on Wednesday. It rose to 103.71 US cents early on Thursday after international markets reacted to Wednesday’s improved domestic consumer sentiment data.
On Wednesday the Westpac/Melbourne Institute Consumer Sentiment Index rose 7.7 per cent to 108.3 in February, its highest level since December 2010.
LTG Goldrock director Andrew Barnett said on Thursday that the Australian dollar spent the afternoon session marking time.
‘‘It’s just waiting around at the moment, waiting for a catalyst to take it higher or lower,’’ he said.
Mr Barnett said the currency’s post consumer-data rally was likely to be reversed over the next few days.
‘‘At the moment the Aussie is a bit sort of lacklustre, it has had a bit of a dead cat bounce and there has been a few opportunistic buyers.
‘‘I really don’t see a lot of big money coming for it unless we get some sort of catalyst.’’
Mr Barnett said the key events for currency markets overnight would be the release of GDP figures for Germany, France and the eurozone.