The Australian dollar has risen more than half a US and is back above 76 US cents.
The Australian dollar has risen more than half a cent after the greenback retreated on economic data that dampened expectations of a Federal Reserve interest rate rise, and following the RBA's cash rate cut.
At 0705 AEST on Wednesday, the local unit was trading at 76.09 cents, up from 75.48 on Tuesday.
The Aussie rose back above 76 US cents after weaker-than-expected car sales figures spurred concerns about growth, while US inflation remained below the Fed's two per cent target.
Westpac strategist Imre Speizer said the Aussie could yet head toward its July high of 76.75 US cents, despite the Reserve Bank's interest rate cut to a new record low, before falling back over the next three months.
"The uncertainty generated by Brexit plus further RBA easing should be negative for the AUD during the months ahead, although partly offset by a weaker US dollar near term," Mr Speizer said.
CURRENCY SNAPSHOT AT 0705 AEST ON WEDNESDAY
One Australian dollar buys:
* 76.09 US cents, from 75.48 cents on Tuesday
* 76.79 Japanese yen, from 77.30 yen
* 67.78 euro cents, from 67.49 euro cents
* 105.04 NZ cents, from 104.67 NZ cents
* 56.98 British pence, from 57.09 British pence
GOVERNMENT BOND YIELDS AT 0705 AEST ON WEDNESDAY
* CGS 5.25pct March 2019, 1.3796 pct, from 1.383 pct on Tuesday
* CGS 4.25pct April 2026, 1.8195 pct, from 1.827 pct
Sydney Futures Exchange prices:
* September 2016 10-year bond futures contract was at 98.09 (implying a yield of 1.91 per cent), from 98.165 (1.835 per cent yield) on Tuesday
* September 2016 3-year bond futures contract was at 98.61 (1.39 per cent), from 98.660 (1.340 per cent).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
