More Sites

Weak US data pushes $A down

Reported by AAP
Thursday, January 31, 2013
Companies forced to change their nameConflict in Iraq and Syria is causing serious headaches for companies who happen to share the ISIS moniker

The Australian dollar has fallen following a weak reading for US economic growth.

At 1700 AEDT on Thursday, the Australian dollar was trading at 104.06 US cents, down from 104.73 US cents on Wednesday.

Since 0700 AEDT, the local currency has traded between 103.81 US cents and 104.30 cents.

OzForex head of corporate dealing Jim Vrondas said weak gross domestic product (GDP) data from the US had prompted a fall in the Australian currency.

"We saw the discussion resurface about whether the US economy was entering another recession, or heading that way again," he said.

"That didn't help the Aussie much."

Official data released in the US overnight showed the economy contracted 0.1 per cent in the December quarter.

Mr Vrondas said US data would continue to influence Australian bonds, with non-farm payrolls data due on Friday night (AEDT).

"Tomorrow night we'll have the next key event for the market, with payrolls data," he said.

After that, he added, the focus would return to local events, with the Reserve Bank of Australia meeting on February 5 for its cash rate decision.

At its last meeting on December 4, the bank lowered the cash rate by a quarter of a percentage point, to three per cent.

21/11/2014 07:35Sydney, Australia. 21 November,2014
advertisement