Dollar lower after ABS data

THE Australian dollar was lower at noon following mixed official trade and preliminary construction data.

THE Australian dollar was lower at noon following mixed official trade and preliminary construction data.

At 12pm AEDT today, the local unit was trading at 101.56 US cents, down from 100.97 cents yesterday.

Since 7am AEDT, the Australian dollar traded in a wide range between 100.68 US cents and 101.49 US cents, according to Iress data.

RBC interest rate strategist Michael Turner said the unit came off slightly after the release of foreign trade and building approvals data.

The Australian Bureau of Statistics (ABS) building construction data showed a drop of 15.9 per cent to 12,342 units in January, seasonally adjusted, from an upwardly revised 14,682 units in December.

"Housing held up pretty well over the past year," Mr Turner said.

"There was a big fall in the 'Other' component of the data, which is used as a proxy for medium density apartments. It dipped quite sharply.

"It is very volatile data."

He said despite the fall, the unit had held up well during the trading day.

Australia also recorded a trade surplus of $1.875 billion in January, seasonally adjusted, from an upwardly revised surplus of $2.018 billion in December.

Economists' forecasts had centred on a surplus of $1.65 billion in the month.

During the month, exports were down 4.0 per cent in adjusted terms, while imports were down 4.0 per cent.

Mr Turner said he did not expect the data to add to the case for a near term interest rate rise.

Meanwhile, the Australian bond market was weaker.

At 12pm AEDT on the ASX 24, the March 10-year bond futures contract price was 94.450 (implying a yield of 5.550 per cent), down from Wednesday's close of 94.510 (5.090 per cent).

The March three-year bond futures contract price was 94.870 (5.130 per cent), down from 94.920 (5.080 per cent).