The Australian dollar has outperformed and retraced lost ground, lifting against its US counterpart, the yen and the euro.
At 0635 AEDT on Wednesday, the Australian dollar was worth 76.32 US cents, up from 76.10 US cents on Tuesday.
The US dollar steadied overnight thanks to Federal Reserve promises of more US interest rate rises this year.
Analysts pointed to support from appearances by Dallas Federal Reserve Bank president Robert Kaplan and Chicago Fed chief Charles Evans as putting the emphasis back on the prospect of more rises in US interest rates.
Westpac’s Imre Speizer said the local currency had outperformed, bouncing off a low of 75.88 US cents up to 76.55 US cents, and he expected to positivity to continue on Wednesday.
“An abrupt reversal overnight, led by the US dollar, puts AUD/USD in a more positive state today. (And it’s) likely to hold above 0.7600,” he said in a note.
AAP
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