(Updates with RBA's policy meeting, updates levels)
By Swati Pandey and Rebecca Howard
SYDNEY/WELLINGTON, Sept 6 (Reuters) - The Australian dollar was bouyant for a fifth straight day on Tuesday after data showed robust government spending bolstered economic growth last quarter while the country's current account deficit also came in well below expectations.
The Australian dollar AUD=D4 hit an intra-day peak of $0.7638, its highest since Aug. 26.
The upbeat data meant the Reserve Bank of Australia left rates unchanged at 1.50 percent at its monthly meeting on Tuesday, a widely expected outcome. AU/INT current account deficit came in at A$15.5 billion ($11.8 billion) last quarter compared with expectations of A$19.75 billion, after a big downward revision to the previous quarter's shortfall. with firmer public spending, it suggested there was some upside risk for second-quarter gross domestic product (GDP) figures due on Wednesday.
After some economists nudged up their forecasts, the general expectation was that GDP grew around 0.5 percent last quarter, still down from 1.1 percent in the first quarter, extending a long phase of growth.
"The Australia economic expansion will celebrate its 25th birthday when the June quarter economic growth figures are released on Wednesday," said Craig James, chief economist at Commonwealth Bank.
"Australia is zeroing in on the Netherlands for the gold medal of the longest economic expansion in the modern era."
The Aussie was also stronger on the New Zealand dollar AUDNZD=R , rising for a second straight day. Although it has lost 2.1 percent on the kiwi this year so far.
The New Zealand dollar NZD=D4 inched higher on Tuesday to $0.7312, aided by expectations for another strong dairy auction late on Tuesday.
The RBA's statement passed without creating any ripples for the Aussie, or kiwi with traders looking to the United States for further direction.
Investors are split on whether the U.S. Federal Reserve will raise interest rates this year with data on non-manufacturing service out later in the day likely to further shape expectations.
New Zealand government bonds 0#NZTSY= were mostly lower in price with yields 1.5 basis point higher.
Australian government bond futures were unchanged, with the three-year bond contract YTTc1 at 98.57. The 10-year contract YTCc1 stood at 98.095.