The Australian dollar was bouyant for a fifth straight day on Tuesday after data showed robust government spending bolstered economic growth last quarter while the country's current account deficit also came in well below expectations. The Australian dollar hit an intra-day peak of $0.7638, its highest since August 26.
The upbeat data meant the Reserve Bank of Australia left rates unchanged at 1.50 percent at its monthly meeting on Tuesday, a widely expected outcome. Australia's current account deficit came in at A$15.5 billion ($11.8 billion) last quarter compared with expectations of A$19.75 billion, after a big downward revision to the previous quarter's shortfall.
The Aussie was also stronger on the New Zealand dollar , rising for a second straight day. Although it has lost 2.1 percent on the kiwi this year so far. The New Zealand dollar inched higher on Tuesday to $0.7312, aided by expectations for another strong dairy auction late on Tuesday. The RBA's statement passed without creating any ripples for the Aussie, or kiwi with traders looking to the United States for further direction.
New Zealand government bonds were mostly lower in price with yields 1.5 basis point higher. Australian government bond futures were unchanged, with the three-year bond contract at 98.57. The 10-year contractstood at 98.095.
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