SYDNEY, Dec 10 Reuters The Australian dollar stayed near a 212year peak on Thursday on strong iron ore prices though overall sentiment was dampened by elevated risks surrounding Brexit trade talks and ongoing political wrangling over U.S. stimulus package.
The Australian dollar was trapped in a narrow range to be last at 0.7458 after going as high as 0.7485 on Wednesday.
The Aussie is up more than 4 so far this year led by its relative success in curbing the coronavirus pandemic, strongerthanexpected macroeconomic data recently and sturdy gains in the price for iron ore its No.1 export earner.
If you are trading commodities from the iron ores bullish side, you need to like the Aussie, which is firing on all cylinders these days, Stephen Innes, chief strategist at axi.
Dalian iron ore hit a record high last week, boosted by top consumer Chinas robust demand for the steelmaking ingredient and supply concerns.
The Aussies rise was, however, capped by disappointing news from overseas with a lack of progress in U.S. fiscal stimulus and Brexit trade negotiations.
In the United States, Congress continued talks on additional economic stimulus, with House lawmakers voting to pass a oneweek stopgap funding bill to give more time for talks.
Meanwhile, British Prime Minister Boris Johnson warned the European Union on Wednesday it must scrap demands that he says are unacceptable if there is to be a Brexit trade deal to avoid a turbulent breakup in three weeks.