Dollar descends on back of US figures

Dollars, moneyThe dollar has drifted lower despite weaker economic data out of the US overnight.

At 0700 AEDT on Thursday, the local currency was trading at 78.39 US cents, down from 78.78 cents on Wednesday.

The Australian dollar peaked at 79.05 US cents overnight but began its descent following the release of disappointing durable goods orders figures in the US.

Orders for US durable goods sagged in February, with new orders for long lasting manufactured goods falling 1.4 per cent, the third decline in four months.

Soft US data would typically weaken the US dollar and strengthen the Australian dollar.

“The market has looked right through the figures and continued to strengthen the US dollar against the Aussie, which is a pretty counter intuitive move,” ANZ senior manager FX in Auckland, Sam Tuck, said.

He said the market was still digesting comments from the Reserve Bank of Australia’s Financial Stability Review on Wednesday which were interpreted as suggesting that any housing concerns would not get in the way of further interest rate cuts from the central bank.

AAP

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