(Australian Associated Press)
The Australian dollar has shed some ground after jumping more than half a cent, after the greenback fell on softer-than-expected economic data.
At 1200 AEST on Wednesday, the local unit was trading at 75.96 cents, up from 75.48 on Tuesday.
The Aussie rose above 76 US cents overnight after weaker-than-expected US car sales figures and below-target inflation spurred concern about economic growth in the world’s largest economy.
Analysts said the disappointing data had reduced expectations of a Federal Reserve interest rate rise, drove the greenback lower and other currencies, including the Australian dollar, higher.
The local currency has shed some gains but continues to perform strongly despite the Reserve Bank of Australia’s cash rate cut on Tuesday.
CURRENCY SNAPSHOT AT 1200 AEST ON WEDNESDAY
One Australian dollar buys:
* 75.96 US cents, from 75.48 cents on Tuesday
* 76.92 Japanese yen, from 77.30 yen
* 67.74 euro cents, from 67.49 euro cents
* 105.44 NZ cents, from 104.67 NZ cents
* 56.99 British pence, from 57.09 British pence
GOVERNMENT BOND YIELDS AT 1200 AEST ON WEDNESDAY
* CGS 5.25pct March 2019, 1.419 pct, from 1.383 pct on Tuesday
* CGS 4.25pct April 2026, 1.914 pct, from 1.827 pct
Sydney Futures Exchange prices:
* September 2016 10-year bond futures contract was at 98.065 (implying a yield of 1.935 per cent), from 98.165 (1.835 per cent yield) on Tuesday
* September 2016 3-year bond futures contract was at 98.610 (1.390 per cent), from 98.660 (1.340 per cent).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)Source: IRESS