SYDNEY - The Australian dollar has closed higher after a report showing an improvement in US manufacturing boosted financial markets' appetite for growth assets.
At 1700 AEST, the Australian dollar was trading at US$0.8043/47, up 0.97 per cent from Thursday's close of US$0.7966/69.
During the domestic session the local unit
traded between US$0.7985 and US$0.8051.
A senior currency analyst with financial markets research group Forecast, Lee Wai Tuck, said positive economic data in the US gave a lift to financial markets' sentiment to risk in Asia on Friday.
The Federal Reserve of Philadelphia's manufacturing index rose in June to its highest level since last September.
The measure of manufacturing activity rose 20.4 index points in June to minus 2.2 points, better than market forecasts for minus 15 points.
But the index remained below the the zero level that separates an expansion from a contraction in activity, where it has been for 18 of the past 19 months.
Wall Street ended higher, with the broad-market Standard & Poor's 500 index up 0.84 per cent.
"The market is more stable after the stronger Philadelphia Reserve numbers yesterday," Mr Lee said from Singapore.
"There was also some buying of US equities.
"That provided a more positive tone for Asian markets."
Mr Lee said the Australian dollar had been leading the move among the currencies against the US currency during Friday's Asian trade.
"There is a lot of demand for Aussie, Aussie/yen as well and Asian equity markets have ended higher," he said.
"Overall, the market is calmer at the moment and stocks have been bid, so there is a bit of risk appetite and commodities prices have been stable.
"That is all supportive for the Aussie."
Sharemarkets in Asia closed firmer on Friday, which gave a boost to investors' sentiment to the Australian dollar, Mr Lee said.
The broader All Ordinaries index closed up 0.18 per cent, while Japan's Nikkei-225 index was 0.85 per cent higher.
With little economic data due during on Friday's offshore session, Mr Lee forecast the Australian dollar to grind higher with a topside of US$0.8100 and support at US$0.7980.
CURRENCY TABLE
CURRENCY SPOT PREVIOUS CLOSE
AUD/USD 0.8043-47 0.7966-69
AUD/JPY 77.95-00 76.44-50
AUD/EUR 0.5775-82 0.5704-11
AUD/NZD 1.2577-88 1.2546-60
AUD/GBP 0.4915-22 0.4855-62
EUR/USD 1.3921-22 1.3961-62
USD/JPY 96.91-94 95.96-98
EUR/JPY 134.92-95 133.98-00
(*Closes taken at 1700 AEST Previous local session)
At 1600 AEST, the Reserve Bank of Australia's trade weighted index (TWI) was at 64.4, up from Thursday's close of 63.5.
- AAP
SYDNEY - The Australian dollar has closed higher after a report showing an improvement in US manufacturing boosted financial markets' appetite for growth assets.
At 1700 AEST, the Australian dollar was trading at US$0.8043/47, up 0.97 per cent from Thursday's close of US$0.7966/69.
During the domestic session the local unit
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