Rates At 0540 GMT Latest Change AUD/USD 1.0007 +0.57% AUD/JPY 77.92 +0.29% 6.50% May, 2013 2.2375% +0.0039 4.50% Mar, 2020 3.8357% -0.0233 10-Yr Spread To U.S. +196 bps +6 bps SFE Dec 3-Year Futures 96.85 -0.01 SFE Dec 10-Year Futures 96.035 +0.035 SYDNEY (Dow Jones)--The Australian dollar was higher late Wednesday, buoyed by news of surging business investment in the third quarter, but more worrying news from Europe forced a reality check in late trading. Business investment rose a massive 12.3% in the third quarter, outstripping an expected rise of 7.0%. Economists said the country is now on track to post economic growth of more than 1.0% in the third quarter compared with a quarter earlier. Economists said the data argued strongly against a cut in interest rates at the central bank's policy meeting Tuesday, pushing the Australian dollar to its highest levels since Nov. 18. "From a policy perspective, today's data confirms the RBA's assessment that resource investment is picking up very strongly, with much more to come," said Scott Haslem, chief economist at UBS. But there remains soft spots in the economy, with news earlier Wednesday that house prices extended a year-long drop in October. Credit growth was also flat in October. "It is clear that at present the housing sector is going nowhere. House prices have fallen for 11 out of the past 12 months," said Craig James, chief economist at Commonwealth Securities. Statements by euro-zone finance ministers that they had agreed to the terms of the proposed European Financial Stability Fund also boosted confidence in early trading, traders said. But it was not long before the mood soured. A report suggesting G-20 finance ministers may not meet before the end of the year jolted confidence and gains reversed. The lack of a solution to the European debt crisis has put into question whether the G-20 ministers will gather to discuss bolstering the International Monetary Fund's resources, a G-20 official said. At 0540 GMT, the Australian dollar was trading at US$1.0007, up from US$0.9950 late Tuesday. It hit an intraday high of US$1.0086. Against the yen, the currency changed hands at Y77.92, up from Y77.69 Tuesday. Retail trade data for October on Thursday will be the next local focus. A strong result could kill off talk of an interests rate cut by the Reserve Bank of Australia next week. A survey Friday of economists by Dow Jones showed close to 80% expect the RBA to keep its cash rate target at 4.50%. -By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com

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