The Australian Dollar is stronger in forex trading today after the release of important economic data supported the case for another interest rate rise by the Reserve Bank of Australia (RBA). The Balance of Trade figures released today revealed that consumer spending stayed at a high level in December despite two interest rate rises during the last six months of 2007. The house price index, released by the ABS showed an increase of 12.3 percent during the year to the month of December. The released data added weight to the argument to increasing interest rates when the RBA meets on Tuesday while it also added upward pressure to the strong Australian Dollar. ''The Aussie is looking very perky today where it's been supported by very strong domestic data with the trade deficit narrowing and house prices accelerating,'' RBC Capital Markets senior currency strategist Sue Trinh said.
The Australian Dollar was strong in forex trading today amidst the release of economic data. It was heavily supported, trading up to 90.43 US cents compared to last Friday's close of 89.54 US cents. The Australian Dollar has been supported also from the widening interest rate differential between it and the United States. The US Federal Reserve recently cut its borrowing rates by a total of 1 and a quarter of a percent this month.
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