The Australian dollar registered strong gains against other major currencies during early North American session on Tuesday. The aussie rose to a 4-day high against the euro and the yen, 6-day high against the U.S. dollar and an 8-day high against the Canadian dollar.
Today’s interest rate decision by the RBA was widely expected. RBA Governor Glenn Stevens has boosted borrowing costs six times since early October from a half-century low of 3 percent, citing an economic expansion the central bank forecasts will almost double to 4 percent in the next two years.
Australia’s trade surplus soared in May driven by a strong surge in exports, official data showed today. The turnaround was fueled by a large increase in exports of coal, iron ore and non-monetary gold.
The trade balance recorded a surplus of A$1.65 billion in May compared to an upwardly revised A$1.12 billion surplus in the previous month. Economists were looking for a surplus of about A$500 million.
The aussie has been extending its uptrend against the euro during early North American session on Tuesday. At 8:45 am ET, the aussie hit a 4-day high of 1.4758 against the euro, compared to yesterday’s close of 1.4934. At present, the aussie is trading at 1.4763 against the euro.
The Australian currency advanced against its U.S. counterpart in early North American session on Tuesday. The aussie hit a 6-day high of 0.8537 against the U.S. dollar at 8:25 am ET. The aussie-greenback pair, which closed yesterday’s trading at 0.840, is now trading at 0.8523.
Against its Canadian rival, the aussie rose to an 8-day high of 0.9036 at 8:30 am ET. Currently, the aussie is trading at 0.9008 against the loonie, up from yesterday’s closing quote of 0.8937.
In economic news, Canadian building permits fell much more than expected on May following two consecutive monthly increases, official data showed today.
Municipalities issued building permits worth C$6.0 billion in May, a 10.8% decline from April, according to Statistics Canada.
Economists were looking for a modest decline of 2% following an upwardly revised increase of 5.9% in April and a 12.3% advance in March.
The aussie-yen pair advanced to a 4-day high of 75.0 at 8:25 am ET. Currently, the pair is worth 74.87, up 1.5%, over yesterday’s closing quote of 73.73.
From the U.S., ISM non-manufacturing composite index for June is expected at 10:00 am ET.