$A higher as currency war issue fades

The Australian dollar is half a US cent higher as traders focus on the global economy rather than the issue of Japan depressing the value of the yen.

At 0700 AEDT on Wednesday, the Australian currency was trading at 103.03 US cents, up from 102.55 cents on Tuesday.

BK Asset Management managing director Kathy Lien said most major currencies had gained against the US dollar.

"The main reason for that is we had US stocks, the S&P 500, climb to a fresh five-year high (during the overnight session)," she said from New York.

"We also had the ECB (European Central Bank) president Mario Draghi brush off any focus on a currency war or that the euro is being overvalued.

"He said the currency war term is overdone.

"That is helping traders refocus the general growth story rather than this back and forth we've seen related to the currency wars."

Ms Lien said the main focus for markets this week would be the G20 meeting on Thursday and Friday in Moscow.

"There has been a lot of back and forth about whether or not Japan will criticise Japan for its exchange rate policy, so I think that will be the biggest focus for investors," she said.

"We also have the Japanese central bank meeting on Thursday."

Ms Lien said she expected the Australian dollar to trade in a range between 102.50 US cents and 103.50 cents on Wednesday.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9294+0.0007+0.08%
    AUDUSD=X
    0.5537+0.0002+0.04%
    AUDGBP=X
    0.6724+0.0003+0.04%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg