Australian dollar stays above 88 US cents

THE Australian dollar is holding onto the gains it made after the release of strong local economic data.

Close-up of used Australian one dollar coin photographerd in Melbourne, Wednesday, June 13, 2012. Reserve Bank of Australia governor Glenn Stevens today said there are big benefits to Australian's as consumers from the high Aiustralian dollar (AUD). (AAP Image/Julian Smith) NO ARCHIVING

THE Australian dollar is holding onto the gains it made after the release of strong local economic data. At 0630 AEST on Friday, the local unit was trading at 88.06 US cents, up from 87.86 cents on Thursday.

Data out on Thursday showed that approvals for the construction of new homes rose three per cent in August, and almost 15 per cent for the year to August.

Meanwhile, Australia’s trade deficit narrowed to $787 million in August, from a deficit of $1.075 billion in July.

Currency snapshot at 0630 AEST on Friday

* 88.06 US cents, from 87.86 cents on Thursday

* 95.47 Japanese yen, from 95.65 yen

* 69.52 euro cents, from 69.56 euro cents

(*Closes taken at 1700 AEST previous local session)

Source: IRESS

Originally published as Australian dollar stays above 88 US cents