Australian Dollar Strong Even as Economic Growth Slows

The Australian dollar retained yesterday’s gains against its US peer and rose versus some other most-traded currencies, including the Japanese yen, today even as the data showed that Australia’s economic growth slowed in the last quarter.
Australia’s gross domestic product rose 0.5 percent in the third quarter of 2012 from the previous quarter on a seasonally adjusted basis. Analysts have thought that growth would remain at the second quarter’s rate — 0.6 percent. The data added to the downside pressure on the Aussie caused by yesterday’s interest rate cut by the Reserve Bank of Australia. Yet the currency remained unfazed by the negative news.
AUD/USD was little changed at 1.0465 as of 14:06 GMT today. AUD/JPY went up from 85.73 to 85.86 and its daily high was at 86.22.

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