Aussie dollar gaining shine
THE Australian dollar has consolidated recent gains as fears over trade tariffs faded for the moment, while a politically inspired pullback in sterling put a squeeze on short positions.
The Aussie dollar was firm at US74.75c yesterday, having touched a three- week peak at US74.84c overnight. A break of resistance around US74.40c had triggered stop- loss bids, with the speculative market short after weeks of selling.
It was aided by a sharp fall in sterling as ministerial resignations threw the British government of Prime Minster Theresa May into turmoil. The pound had pulled back to $ A1.7727, having been as high as $ A1.7938 early on Monday.