Dollar remains higher after GDP data

THE Australian dollar remains higher after economic growth figures were roughly in line with expectations.

THE Australian dollar remains higher after economic growth figures were roughly in line with expectations.

At 12pm AEDT today, the currency was trading at 104.69 US cents, up from 104.38 US cents at yesterday's close.

Since 7am AEDT today, it has traded between 104.54 US cents and 104.82 cents.

Commonwealth Bank currency strategist Peter Dragicevich said the Aussie dollar continued to rise overnight after strengthening yesterday after the Reserve Bank of Australia cut the cash rate by 0.25 per cent.

"It seems the market reacted because they were less dovish than people were expecting," he said. "Then last night, we had some US dollar weakness across most currencies, and that helped support the Australian dollar too."

Gross domestic product (GDP) data released today had little impact on the currency.

"The number came in close to expectation, so the market hasn't really reacted to it," Mr Dragicevich said. "Tomorrow's employment data will be one that might influence the Aussie dollar more."

The Australian economy grew by 0.5 per cent in the September quarter, and by 3.1 per cent over the year to September, according to official data.

Meanwhile, Australian bond futures prices were higher at noon. At 12pm AEDT today, the December 10-year bond futures contract was at 96.920 (implying a yield of 3.080 per cent), up from 96.900 (3.100 per cent) yesterday afternoon.

The December three-year bond futures contract was trading at 97.410 (2.590 per cent), up from 97.380 (2.620 per cent).