The Australian dollar is slightly lower after the release of weaker than expected US economic data.

At 0700 AEST on Friday, the local unit was trading at 96.63 US cents, down from 96.73 cents on Thursday.

Since 1700 AEST on Thursday, the Australian dollar traded between 95.83 US cents and 96.98 cents.

Data released overnight showed the US economy grew at an annualised rate of 2.4 per cent in the March quarter, which was slightly lower than economists were expecting.

The number of people filing for unemployment benefits last week also rose by more than expected. LTG Goldrock director Andrew Barnett said the data caused the Australian dollar to trade in a wide range during the overnight session.

“It put the US market in the mood that they will keep that stimulus going for a little bit longer than people initially thought a week ago.

“The overall fundamental trends for the Aussie dollar and the US dollar are in place, it’s never going to be a one-way street down, the Aussie could point up before it makes its next move lower.”

Barnett said he expects the Australian dollar to eventually fall to at least 93.50 US cents, and depending on the timing of the tapering of the US Federal Reserve’s stimulus the currency could fall further.

He said markets would now be waiting on the Reserve Bank of Australia’s board meeting and cash rate decision on Tuesday.

The RBA cut the cash rate to a record low of 2.75 per cent at its May board meeting and Barnett doesn’t expect there will be another reduction at the June meeting.

AAP