Australian dollar up on RBA rates data
The Australian dollar climbed after falling slightly on weak retail and building approvals figures late this morning, ticking back up about a fifth of a US cent after the Reserve Bank announced cash rates would remain on hold at 4.5 per cent until at least next month.
At midday, the local unit was trading at 91 US cents, an increase of 0.14 per cent from yeterday's close of 90.87 US cents. The Aussie was also buying 78.64 yen, 69.08 euro cents and 57.28 pence.
Since 7am, the domestic currency traded from 90.92 to 91.41 US cents, based on IRESS data.
Retail trade edged up by a mere 0.2 per cent, while building approvals slumped 3.3 per cent, both in June, according to the Australian Bureau of Statistics.
Nomura Australia chief economist Stephen Roberts said the Australian dollar had dipped on the ABS data.
''Slightly softer data is having a little bit of an influence,'' Mr Roberts said.
''The Australian dollar is quite elevated at the moment, way above 91 US cents again, so at this level it's saying that risk is back in terms of people wanting to invest in equity markets.
''So when you get anything that's slightly soft on the data side, it probably takes a bit of steam out of the Australian dollar.''
Mr Roberts had predicted the local unit would be well backed in the lead up to the Reserve Bank of Australia interest rate ruling.