SYDNEY: The Australian dollar gained in Asia on Wednesday on central bank official remarks suggesting economic recovery tools are in place on exchange and interest rates while the yen was stronger on better than expected data.
AUD/USD traded at 0.7639, up 0.21%, while USD/JPY changed hands at 121.05, down 0.07%. EUR/USD held at 1.0708, up 0.11%.
In Australia, the March Westpac-MI Consumer Sentiment index fell 1.2% to 99.5, somewhat expected after the strong rise in February that took the index to the highest level in more than a year.
A weaker Australian dollar from a mid-2013 peak has helped the economy adjust to new sources of demand with growth expected to gradually pickup, a senior Reserve Bank official said earlier Wednesday.
Assistant Governor Christopher Kent told the National RSL Clubs Conference in Hobart that a record low cash rate of 2.25% and other measures should help rebalance economic growth away from the end of a mining boom.
“Very low level of interest rates is expected to sustain strong activity in the housing market and support household wealth” and provide support for household consumption,” Kent said.
