The overnight rally in oil prices amid reports that oil producers finally agreed to cut production levels sent Asia markets higher on Thursday.
Australia’s ASX 200 was up 0.87 percent in morning trade, with the energy sector rallying 6 percent, while the materials sector gained 2.25 percent.
The Australian dollar, which is influenced by moves in oil prices, climbed from levels near $0.7650 in the overnight session to as high as $0.7710 on Thursday morning local time. As of 9:49 a.m. HK/SIN, the Aussie traded at $0.7700.
Stephen Innes, a senior trader at OANDA, said on Thursday that while the bounce in commodities helped to push the Aussie dollar higher, sentiment is also “underpinned by a growing consensus that the Reserve Bank of Australia will remain on hold for the foreseeable future.”
This, Innes said, underscored the market’s view of the Aussie as a “safe haven high yielder.”
