Australian dollar keeps its head above 81 US cent level

THE Australian dollar is lower but still holding above 81 US cents following better-than-expected economic data.

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THE Australian dollar is lower but still holding above 81 US cents following better-than-expected economic data.

At 0700 AEDT on Wednesday, the local currency was trading at 81.10 US cents, down from 81.43 cents on Tuesday.

The currency bounced on Tuesday after Australia’s trade deficit came in at $925 million for November — significantly smaller than what economists were expecting.

There were also positive data out of China, with the services PMI coming in at a three-month high of 53.4 points in December, from 53.0.

“The Australian dollar is near 81.05 US cents this morning, having touched a high of 81.58 cents yesterday afternoon,” National Australia Bank senior economist Spiros Papadopoulos said.

“The Australian dollar got a boost yesterday after the better than expected trade data and the rise in the Chinese Services PMI ... but it was unable to sustain the momentum into the European session.”

Currency snapshot at 0700 AEDT on Wednesday

One Australian dollar buys:

* 81.10 US cents, from 81.43 cents on Tuesday

* 96.19 Japanese yen, from 96.86 yen

* 68.06 euro cents, from 68.09 euro cents

* 104.18 New Zealand cents, from 105.23 NZ cents

* 53.48 British pence, from 53.35 pence

One euro buys:

* 119.14 US cents, from 119.57 cents

* 141.32 Japanese yen, from 142.24 yen

One US dollar buys:

* 118.62 Japanese yen, from 118.95 yen

(*Closes taken at 1700 AEDT previous local session)

Source: IRESS

Originally published as Australian dollar keeps its head above 81 US cent level