The Australian dollar has rallied above 93 US cents thanks to a weaker greenback.
At 1200 AEST on Wednesday, the local currency was trading at 93.44 US cents, up from 92.94 cents on Tuesday.
The currency rallied to a two-week high of 93.69 US cents overnight following a sharp sell-off of the US dollar.
Commonwealth Bank currency strategist Peter Dragicevich said the currency shrugged off softer-than-expected retail sales figures on Wednesday and continued to be supported by the weaker greenback.
Retail sales rose 0.1 per cent in March, Australian Bureau of Statistics figures showed – weaker than the 0.4 per cent rise economists had been expecting.
“The retail sales data were a bit weaker than expected but that hasn’t had any lasting impact on the Aussie,” Mr Dragicevich said.
“I think people are reassessing their views around the US economy.
“We’ve had some data to suggest that US first-quarter gross domestic product, which was already weak, may be revised even lower.
“Tonight we have the testimony from US Federal Reserve chair Janet Yellen and she’s usually quite dovish so we expect the US dollar to remain under pressure.”
Stay informed, daily
Australian bond futures prices were also higher.
The June 2014 10-year bond futures contract was trading at 96.165 (implying a yield of 3.835 per cent), up from 96.140 (3.860 per cent) on Tuesday.
The June 2014 three-year bond futures contract was at 97.140 (2.860 per cent), up from 97.120 (2.880 per cent).
