Strong US data weakens dollar

 

dollar,coin,moneyThe Australian dollar is lower following strong US jobs figures and comments from the Reserve Bank governor about the currency being too high.

At 0700 AEST on Friday, the local currency was trading at 93.47 US cents, down from 93.66 cents on Thursday.

The Australian dollar fell more than one US cent on Thursday after RBA governor Glenn Stevens said the currency was “overvalued, and not by just a few cents”.

The currency was also weighed down by weaker than expected retail sales figures.

Later on Thursday night, the Australian dollar took another hit after US non-farm payrolls for June came in much stronger than expected at 288,000.

“We’ve been waiting for consistently good US data and now we are getting it,” National Australia Bank senior currency strategist Emma Lawson said.

“The labour market is meeting the US Federal Reserve’s targets early and continues to show a sustained, and now robust, improvement.

“The US dollar was stronger across the board and held the gains, but they were relatively modest in the circumstances.

“The Australian dollar underperformed, post Stevens’ comments yesterday.”

AAP

Comments

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?
Vote

Twitter

#AlceonGroup announce first Victorian @Lego_Group store to open in @WestfieldAU Doncaster #retail https://t.co/qMfYJp5WFM

3 days ago

Almost half of online marketplace @Kogan gross profit for FY19 came from its private label offering #retail #onlinehttps://t.co/lLwhKBnVp2

4 days ago

Talks of a merger between @OZretailers and @retailaustralia have come to a close, with the parties failing to align… https://t.co/hkqHyDsBkr

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered