THE Australian dollar was higher in late Asian trading yesterday after strong economic data showing rising house prices in the fourth quarter of 2012 and solid gains in consumer sentiment in March. At 5pm AEDT it was buying $US1.0314, up US0.31c.
A survey published by Westpac and the Melbourne Institute showed consumer sentiment improved by 2 per cent in March from February to an index level of 110.5 points, the highest reading since December 2010. In annual terms, the consumer sentiment index rose 15 per cent.
Separately, figures compiled by the Real Estate Institute of Australia showed capital city house prices in the fourth quarter of last year rose 3.8 per cent from the third.
"Overall, it's more reason for the RBA to stay on hold in April," National Australia Bank economist Spiros Papadopoulos said. "The economy should be performing better, not worse, in the second half of the year."
The Reserve Bank has cut rates six times since November 2011 to help lift the world's 12th-largest economy, as a mining boom fuelled by China's demand for raw materials slows.