Dollar gains ground

 

piggybank,money,savingsThe Australian dollar has continued to rise on surprisingly strong economic growth figures.

At 0700 AEST on Thursday, the local currency was trading at 92.77 US cents, up from 92.67 cents on Wednesday.

The Australian dollar rallied as high as 92.99 US cents on Wednesday following the release of the much stronger than expected gross domestic product figures.

Australia’s economy grew by 1.1 per cent in the March quarter, and by 3.5 per cent on an annual basis.

Economists had expected growth of 0.8 per cent in the March quarter and an annual rate of 3.1 per cent.

“The Australian dollar extended its gains on the back of stronger data,” BK Asset Management MD Kathy Lien said.

The GDP data were also accompanied by stronger services industry figures from the Australian Industry Group, she said.

“Service sector activity also improved, validating the Reserve Bank of Australia’s decision to maintain its neutral monetary policy bias,” she said.

Traders will now await Chinese services figures and Australian trade data on Thursday.

AAP

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