The Australian dollar pushed through the psychological 70 US cents barrier in late local trading on Friday, touching its highest level in nearly two weeks, helped by more positive news out of Japan, Australia's major trading partner.
The Nikkei Stock index jumped two percent as the International Monetary Fund said it may upgrade its forecast for Japan's upbeat economy.
The AUD was $0.7012/17 compared with $0.6924/29 late here on Thursday.
The Aussie survived a test of 69 cents in offshore trading, but a lack of follow-through momentum saw it stall at 69.75 cents earlier in the session. However it firmed again in the latter stages of local trading to touch 70.23 cents.
The AUD has traded a fairly wide range this week, bouncing back from a seven-month low of 67.95 cents.
"Financial markets continue to drift, desperately seeking a theme to overcome recent volatility," said Geoff Bowmer, divisional director foreign exchange at Macquarie Bank. "US monetary policy provided the trading trigger for many weeks but with a late June rate hike now seemingly set in stone, markets are left floundering for the next 'story'," he said.
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