The Australian dollar hit a fresh seven month low after the release of stronger US economic growth figures.

At 0700 AEST on Monday, the local unit was trading at 87.54 US cents, down from 87.66 cents on Friday.

Late on Friday night, Australian time, the Australian dollar dropped as low as 97.48 US cent – its lowest since February.

Data out on Friday showed that the US economy grew at an annual rate of 4.6 per cent in the June quarter, which was up from the previous estimate of 4.2 per cent.

Bank of New Zealand strategist, Kymberly Martin, said the data helped the US dollar rally against all the major currencies, which pushed down the Australian dollar’s value.

“Broad US dollar strength was the key theme on Friday night,” she said.

“The US dollar appeared to gain the upper hand after the release of the most recent reading of second quarter US gross domestic product.”

AAP

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