Dollar near half a cent higher

The local unit has maintained strong gains made on the back of strong GPD data.

The Australian dollar has maintained gains made on the back of strong economic growth figures, sitting close to half a US cent higher in early afternoon.

At 2pm (AEST) on Wednesday, the currency was trading at 72.78 US cents, up from 72.37 cents on Tuesday.

It came after Australia’s economy grew by 1.1 per cent in the March quarter, taking the annual rate of growth to 3.1 per cent, according to official figures on Wednesday.

The stronger than expected figures have pared back chances of the Reserve Bank cutting the cash rate again in June, easyMarkets senior dealer Andreas Tjahja said.

“The Australian dollar surged higher as first quarter GDP surprised to the upside,” he said.

“This is remarkable growth for Australia, led by exports, and diminishes the chance for a further RBA cut.”