The Australian dollar retained most of Wednesday’s advances after firmer than estimated inflation figures.
Based on official data, the underlying inflation climbed 0.6% in the 1st quarter for an annual rate of 2.35%.
The Aussie traded at 72.31 euro cents from Wednesday’s 72.23 euro cents, and 77.55 US cents from 77.78 US cents.
A bounce in iron ore prices backed the currency. The data continue to render scope for another interest rate cut, “but do not of themselves pressure the RBA to cut rates further,” said David de Garis, Senior Economist at National Australia Bank.
The material has been provided by InstaForex Company – www.instaforex.com