The Australian dollar strengthened to a high of 0.7440 against the US currency on
Wednesday before retreating back to below 0.74 later in New York…. … The US
currency rallied generally as markets continued to price in further US interest
rate increases while there was also Australian dollar selling interest.

The
domestic influences were limited on Thursday with the local currency settling
close to 0.7375. US trends will tend to dominate in the short term with
Australian factors still in the background as the Reserve Bank keeps rates on
hold. Commodity prices are more likely to trigger short-term Australian dollar
moves and volatility will remain a considerable threat

The
Australian dollar will find it difficult to make strong headway while US
interest rate expectations remain intact. There is likely to be further
short-term AUD selling interest close to 0.7450 against the US
dollar.

www.investica.co.uk