The Australian dollar hit a new 2017 high overnight, as the greenback sagged after US Treasury Secretary Steve Mnuchin made it clear any structural reforms by the Trump administration will take time to boost the economy.
The Aussie rose as far as US77.41¢ overnight, its highest level since the immediate aftermath of the US elections in November, before consolidating around US77.15¢ on Friday morning.
More BusinessDay Videos
- Video duration
- 00:36
Aussie dollar surges past US77c
Aussie dollar surges past US77c
The Australian dollar clears the US77c mark, its highest since the US election. Vision courtesy: ABC News 24.
Up Next
Ahmed Fahour's shock Australia Post resignation
- Video duration
- 01:08
- Video duration
- 01:08
Ahmed Fahour's shock Australia Post ...
Ahmed Fahour's shock Australia Post resignation
Mr Fahour surprisingly announced on Wednesday that he would resign just weeks after the revelation of his $5.6 million salary caused a national furore and drew the ire of Prime Minister Malcolm Turnbull.
Up Next
Penalty rate cut: how did it happen?
- Video duration
- 02:07
- Video duration
- 02:07
Penalty rate cut: how did it happen?
Penalty rate cut: how did it happen?
Workplace reporter Nick Toscano contextualises the Fair Work Commission's announcement on Thursday that Sunday penalty rates paid in retail, fast food, hospitality and pharmacy industries will be reduced from the existing levels.
Up Next
Cambodian land grab victims confront ANZ
- Video duration
- 01:59
- Video duration
- 01:59
Cambodian land grab victims confront ANZ
Cambodian land grab victims confront ANZ
Four farmers forcibly evicted from their land in rural Cambodia by a land grab financed by ANZ have travelled to Melbourne on behalf of almost 700 Cambodian families seeking compensation from the bank.
Up Next
They're coming for your frequent flyer points
- Video duration
- 01:56
- Video duration
- 01:56
They're coming for your frequent flyer ...
They're coming for your frequent flyer points
Just when you think the risk of identity theft and cyber fraud means youâll have to leave your credit cards in a safe, here's another one. The scumbags are stealing your frequent flyer points.
Up Next
Australia Post CEO Ahmed Fahour quits
- Video duration
- 01:19
- Video duration
- 01:19
Australia Post CEO Ahmed Fahour quits
Australia Post CEO Ahmed Fahour quits
Mr Fahour came under fire recently after it was revealed that he earned $5.6 million last year. (Video courtesy: ABC News 24)
Up Next
Nine Entertainment earnings report
- Video duration
- 00:22
- Video duration
- 00:22
Nine Entertainment earnings report
Nine Entertainment earnings report
Nine Entertainment reports a $237 million loss for the six months to December.
Up Next
McGrath earnings report
- Video duration
- 00:22
- Video duration
- 00:22
McGrath earnings report
McGrath earnings report
Real estate company McGrath posts a 72 per cent fall in half year pro-forma profit.
Aussie dollar surges past US77c
The Australian dollar clears the US77c mark, its highest since the US election. Vision courtesy: ABC News 24.
The new high extends a strong rise since the beginning of the year - the Aussie has soared against most major currencies, leading some to suspect investors are stocking up on the currency to gain exposure to forecast strong growth in Asia.
Mr Mnuchin flagged "very significant" tax reform focusing on middle-income tax cuts, simplification and lower company taxes, and added the Trump administration was still studying a proposed border tax on imports.
Related Content
"We want to get this done by the August recess," he told CNBC, acknowledging in another interview that such a timeline was "very aggressive".
But he also noted that any boost to GDP growth from the new administration's policies, which have yet to be detailed, would be a long-term story, saying tax reform wouldn't boost economic growth to 3 per cent before late 2018.
Investors were disappointed by the lack of detail around tax reform, while Wednesday's more dovish than expected US Federal Reserve meeting minutes also continued to weigh on the greenback.
"The market is continuing to wait for the important details of the tax/fiscal plans, the absence of any infrastructure details, and that Mnuchin said that the step-up in growth to 3 per cent may not occur until late 2018," NAB economist David de Garis said.
Mr Mnuchin also signalled no urgency to designate China a currency manipulator, saying he wanted to use a regular review of foreign-exchange markets to determine if the US's largest trading partner was cheating.
Earlier this week, Deutsche Bank chief economist Adam Boyton said the dollar could push beyond US80¢ - a level it hasn't traded at since May 2015 - off the back of Australia's resurgent exports. The Australian dollar has yet to break through the US78¢ barrier this year.
Reserve Bank of Australia governor Philip Lowe is facing the House of Representatives on Friday, which may provide further momentum for the currency. Mr Lowe will be asked to address a series of disappointing economic figures out this week - including weak private sector wage growth and lower than expected business investment.