Aussie dollar trading above 72 U.S. cents

The Australian dollar has seen little fluctuation over as traders digest Australia's central bank's decision to hold rates on Tuesday.

At 1700 local time (AEDT) on Wednesday, the local unit was trading at 72.08 U.S. cents, up from 71.95 U.S. cents on Tuesday.

The Reserve Bank of Australia kept the official cash rate on hold at two percent on Tuesday however said there is scope for further easing if warranted.

Local analysts however are unsure where to focus and when easing is likely to occur as the RBA is "firmly in the data dependent camp" and will only drop rates if there is a slide in Australia's economy coupled with housing market pressure.

"This suggests that unless there is a massive downturn in the economy, it is unlikely that there will be any move on rates until its February 2016 meeting," OANDA Australia and Asia Pacific senior trader Stephen Innes told local media.

Local traders sought guidance from local economic data, however figures released on Wednesday were mixed, with retail spending figures at market expectations, but Australia's trade deficit hit a six month low.

At 1758 local time (AEDT), the Australian dollar was trading at 72.05 U.S. cents. Endit