The Australian dollar is lower, consolidating after a rally on the back of Federal Reserve chair nominee Janet Yellen’s testimony to a US Senate committee.
Early Friday, the local unit was trading at 93.18 US cents, down from 93.52 cents on Thursday.
Yellen, the White House nominee to lead the Federal Reserve, said the central bank would do whatever it could to back a robust US economic recovery.
In her confirmation hearing testimony on Friday morning AEDT, she said the US economic stimulus program “cannot continue forever” but policymakers had “the will and commitment” to strengthen growth and the jobs market.
Her remarks saw the Aussie dollar rise against a weaker US dollar, Westpac New Zealand senior market strategist Imre Speizer said.
“There was nothing in her questions-and-answers which suggest she is ready to consider tapering soon,” Speizer said.
“She remained committed to ongoing stimulus.
“That caused the US dollar to fall on reiteration of her dovish leanings.
“The Aussie dollar went up in response to her testimony and then it consolidated – it was taking a breather – so it’s had a modest lasting positive impact on the Aussie.”
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US stocks barrelled to fresh records, shrugging off some disappointing earnings results amid greater confidence the Federal Reserve will wait longer before tapering the stimulus program.
At the closing bell on Thursday, the Dow Jones Industrial Average tacked on 55.10 points (0.35 per cent) at 15,876.73.
The broad-based S&P 500 rose 8.59 (0.48 per cent) to 1,790.59, while the tech-rich Nasdaq Composite Index added 7.16 (0.18 per cent) at 3,972.74.
The gains pushed the Dow and S&P 500 to new all-time records for the second day in a row.
