Dollar bounces back


online dollarThe Australian dollar has bounced back above 88 US cents following the release of disappointing economic data in the US.

At 0700 AEDT on Thursday, the local currency was trading at 88.12 US cents, up from 87.31 cents on Wednesday.

Figures from the US overnight showed that retail sales retreated in September while producer prices also fell.

Meanwhile, the US Federal Reserve’s Beige Book report said the US economy was growing at about the same modest pace it had maintained in recent months.

Westpac senior market strategist in Wellington, Imre Speizer, said risk aversion accelerated overnight.

The US dollar dropped while bond prices surged.

He said the disappointing US data, along with additional reports on the spread of the Ebola virus, had driven the moves, but the Australian dollar had fared well.

“(The Australian dollar was) weighed by global risk aversion but supported by US dollar weakness,” Speizer said.

“We favour a rise towards 88.50 US cents.”


westpacGet the fx factor with Westpac’s extensive range of FX services to help your business trade more effectively. Find out more here.


Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Is the US-China trade war having an impact on your business?


#AlceonGroup announce first Victorian @Lego_Group store to open in @WestfieldAU Doncaster #retail

2 days ago

Almost half of online marketplace @Kogan gross profit for FY19 came from its private label offering #retail #online

3 days ago

Talks of a merger between @OZretailers and @retailaustralia have come to a close, with the parties failing to align…

1 week ago

FREE NEWS BRIEFS Get breaking news delivered