$A higher, despite weak session

The Australian dollar has recovered from earlier losses to start the local session slightly higher, tracking a similar move on US stock markets.

At 0700 AEDT on Tuesday, the Australian dollar was trading at 105.61 US cents, up from 105.48 US cents on Tuesday afternoon.

BK Asset Management managing director Kathy Lien the Australian dollar dipped as low as 105.22 US cents overnight but gained ground in the early hours of Wednesday.

She said the recovery had been fuelled by US stock markets, which started the New York session poorly before regaining most of their lost ground.

"US Stocks opened lower but have slowly been improving," Ms Lien said.

"So, (the Australian dollar) has been taking its lead from US equities."

Global stock markets took a hit on Tuesday night and early on Wednesday after Official figures showed German gross domestic product (GDP) shrank by about 0.5 per cent in the fourth quarter of 2012, bringing full-year growth to just 0.7 per cent.

Ms Lien said the Australian dollar's movements against the US dollar on Wednesday would depend largely on its performance against the yen.

The Australian dollar weakened against the yen on Tuesday, after having rallied sharply against the currency during the past month.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9334+0.0007+0.08%
    AUDUSD=X
    0.5560+0.0006+0.11%
    AUDGBP=X
    0.6756+0.0004+0.06%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg