Strong US data weakens dollar
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.”
Inside Retail Polls
We reveal the freshest changemakers, disruptors and trendsetters in the latest issue, grab a copy today:… https://t.co/zB6tefVJJk2 weeks ago