Dollar struggles against greenback

 

coins, markets, dollar, money, stocksThe Australian dollar is straining to keep its head above 83 US cents following disappointing Chinese numbers and surprisingly strong US jobs data.

At 0700 AEDT on Tuesday, the local currency was trading at 82.98 US cents, up from 82.90 cents on Monday.

It earlier briefly raised its head above the 83 US cent mark, reaching 83.15 US cents at 0617 AEDT Tuesday.

The Australian dollar hit fresh four year lows on Monday, reaching 82.75 US cents, its lowest level since June 2010, after official figures on Friday showed that the US economy added 321,000 new jobs in November, the highest monthly number in almost three years.

The local currency came under further pressure on Monday after figures from China, Australia’s largest trade partner, showed a surprise fall in imports.

A continued slide in oil prices overnight did the Australian dollar no favours either, Bank of New Zealand currency strategist, Raiko Shareef, said.

“Yesterday, the NZ dollar and Australian dollar sank lower on a poor set of Chinese trade numbers,” Shareef said.

“While the headline trade balance appeared positive, the details were weak. Both exports and imports seriously undershot expectations.”

Chinese trade data showed exports increased in November by less than expected, while imports unexpectedly dropped, pushing the trade surplus to a record $US54.47 billion ($A58.93 billion).

The market on Tuesday would await the monthly National Australia Bank business survey, released at 1130 AEDT, he said.

AAP

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