Australian dollar falls

dollar2The Australian dollar is sharply lower against its US counterpart which has strength amid strong US economic data and comments from Federal Reserve officials.

At 0635 AEDT on Friday, the Australian dollar was worth 77.88 US cents, down from 78.27 US cents on Thursday.

Westpac’s Imre Speizer says the US dollar has risen, along with US equities and bond yields, with Federal Reserve comments upbeat.

“The US dollar index is up 0.6 per cent on the day, to a two-month high … (while the) AUD extended its earlier fall, which was triggered by disappointing retail sales data,” he said in a morning note.

The Aussie had gone from 78.40.

Also helping were some positive US economic data and comments from the US central bank.

“US factory orders rose 1.2 per cent in August (vs 1.0 per cent expected), less affected by the hurricanes than expected. Durable goods orders for August were finalised at +2.0 per cent (vs 1.7 per cent expected).

“Fed speakers included (San Francisco Fed Bank president John) Williams, who said one more hike this year and another three next year are appropriate given the economy’s strength, and (Philadelphia Fed president Patrick Harker, who said much the same thing.”

Speizer said the Australian dollar would likely “break below 0.7785 would then target 0.7710 (30 June peak), probably dependant on the USD recovering further (for which tonight’s US payrolls data is key).”

The Aussie dollar is also lower against the yen and the euro.

AAP

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