Dollar up on better than expected data

THE Australian dollar is higher on the back of better than expected trade data.

The RBA expressed concern about the persistently high Australian dollar. (AAP Image/Julian Smith)

THE Australian dollar is higher on the back of better than expected trade data.

At 12pm AEDT today, the local unit was trading at 94.96 US cents, up from 94.77 cents yesterday.

The Australian dollar has clawed back after slipping half a US cent yesterday after the Reserve Bank governor said the local currency was "uncomfortably high".

He said a lower currency was needed to help rebalance growth in the economy, indicating the possibility of another cash rate cut.

But better than expected trade data, following strong retail sales data on Monday, have helped the Australian dollar to regain its losses, Easy Forex currency dealer Tony Darvall said.

"The Aussie dollar is doing quite well, in spite of the RBA governor's statement yesterday where he used quite strong rhetoric, what we call jawboning," Mr Darvall said.

"He said the Australian dollar was uncomfortably high and would need to be lower for the economy to rebalance.

"Generally, when central bank heads do jawbone, it doesn't work.

"We just had retail sales on Monday that was very good, trade balance data today that was better than expected, so in that regard we're looking at the Aussie doing very well."

Bond futures prices were lower.

At 12pm AEDT, the December 10-year bond futures contract was trading at 95.855 (implying a yield of 4.145 per cent), down from 95.905 (4.095 per cent) today.

The December three-year bond futures contract was at 96.800 (3.200 per cent), down from 96.850 (3.150 per cent).

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