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

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