The Australian dollar edged up on Wednesday after data showed the resource-rich economy grew at a solid clip in the last quarter, supporting views of a steady interest rate outlook. The Aussie rose as far as $0.8998, from $0.8943 in early trade and a one-month low of $0.8891 touched on Monday. It had been aided overnight after Russian President Vladimir Putin played down the prospect of a war in Ukraine.
It later pared gains to $0.8950, partly on option related selling. A sustained break above 90 cents would target $0.9040-50, then the February peak of $0.9081.
The currency stepped up after data showed the economy grew by 0.8 percent last quarter and 2.8 percent for the year, topping expectations and marking a remarkable 22 years without a recession.
The Aussie held overnight gains versus the yen at 91.39, while the kiwi climbed to 85.66 yen, within sight of a five week-high touched last week. The New Zealand dollar held firm at $0.8390 as concerns about Ukraine subsided, while the likelihood of higher rates as soon as next week underpinned the currency.
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