The Australian dollar has benefited from disappointing American manufacturing data coinciding with US Federal Reserve nominee Janet Yellen’s comments in favour of continuing stimulus measures.

At 0700 AEDT on Monday, the Australian dollar was trading at 93.79 US cents, up from Friday’s close of 93.36 cents.

The local currency’s offshore gains followed a 0.1 per cent drop in US industrial production during October, along with a surprise slide in New York manufacturing activity in November.

Westpac New Zealand senior market strategist Imre Speizer said the Friday night release of disappointing US data coincided with Ms Yellen’s pro-stimulus comments, which dented the greenback.

“It was more the fact that she did not throw out any hawkish surprises in her testimony which caused the US dollar to fall,” he told AAP.

“Then on Friday night, you had some disappointing US data which fitted that theme, the idea that Janet will not be doing any tapering this year.”

In the absence of any significant local data, the Australian dollar is expected to test the 94 US cent level on Monday.

AAP