SYDNEY, Aug. 4 (Xinhua) -- The Australian dollar has continued to consolidate overnight as remains stubbornly higher than its immediate post-central bank rate cut low.
At the Asian open on Thursday, the Australian dollar was trading at 75.88 U.S. cents, just slightly higher Wednesday's 75.85 U.S. cent close.
While the U.S. dollar firmed slightly in overnight trade, the local unit continued to be supported on the back of strong key commodity prices, in defiance of a stubborn Reserve Bank of Australia that wants the unit to drop to spur inflation.
Commonwealth Bank of Australia chief currency strategist Richard Grace said there are eight compelling reasons why the unit is not falling, including the attractive rate market against its developed peers and the fact that it's a difficult case for the greenback to strengthen enough to push the Aussie materially lower.
"The RBA is cutting because inflation is low and real rates have therefore become elevated, not because of a sharp downturn in Australia's economy," Grace said, adding Australia's terms of trade is set to record its first rise in years following gains in key commodities over the quarter.
At 1004 local time (AEST), the Australian dollar is trading at 76.04 U.S. cents.
