Australia dollar rises ahead of US Federal Reserve speech

The Australian dollar has edged higher as financial markets wait for further clarity on the timing of a US interest rate hike from US Federal Reserve chair Janet Yellen.

At 5pm AEST yesterday, the local unit was trading at 76.33 US cents, up from 76.25 cents on Thursday.

Moody's Analytics economist Emily Dabbs expressed surprise in the Australian dollar's rise, given the caution in the market ahead of Dr Yellen's speech at an annual symposium in Wyoming, scheduled for midnight on Friday, Australian time.

"It's the calm before the storm so you'll see the occasional bump up or down," Ms Dabbs said.

If Ms Yellen signals a rate hike is possible in September, the US dollar is likely to rise, and the Australian dollar fall, she said.

"There's been talk that she will be trying to indicate it's live, but whether or not that actually means a rate hike is another question as well," Ms Dabbs said.

Most investors don't expect a September rate hike because of the US federal election in November, and are forecasting a rise by the end of 2016.

CURRENCY SNAPSHOT AT 5PM AEST ON FRIDAY

One Australian dollar buys:

* 76.33 US cents, from 76.25 cents on Thursday

* 76.70 Japanese yen, from 76.57 yen

* 67.56 euro cents, from 67.69 euro cents

* 104.31 New Zealand cents, from 104.34 NZ cents

* 57.76 British pence, from 57.72 pence

GOLD:

* The spot price of gold in Sydney at 1700 AEST was $US1,324.27 per fine ounce, down $US1.63 on Thursday's price of $US1,325.90.

BOND SNAPSHOT AT 1630 AEST ON FRIDAY:

* CGS 5.25pct March 2019, 1.4098pct, from 1.398pct on Thursday

* CGS 4.25pct April 2026, 1.8544pct, from 1.8545pct

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract was at 98.135 (implying a yield 1.865 per cent), up from 98.13 (1.87 per cent) on Thursday.

* September 2016 3-year bond futures contract at 98.61 (1.39 per cent), down slightly from 98.63 (1.37 per cent).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)