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Dollar hits three week high

grid, data, money, dollarThe Australian dollar has hit a three week high after weaker than expected economic data caused a sell off in the greenback.

At 0700 AEDT on Wednesday, the local unit was trading at 88.61 US cents, up from 88.13 cents on Tuesday.

The currency peaked at 88.82 US cents, early on Wednesday morning, its highest level since October 9.

New orders for US manufactured durable goods dropped 1.3 per cent in September on the back of a decline in volatile transportation orders, government data showed.

National Australia Bank senior economist, David de Garis, said the data sparked a sell off in the US dollar.

“Reasons to sell the US dollar came from a weaker than expected reading from the September US durable goods orders report.

“The upshot this morning is that the likes of the euro, sterling, Australian dollar, NZ dollar and Canadian dollar have made some net gains against the US dollar overnight.”

On Wednesday, markets will focus on the release a Chinese consumer sentiment survey from Westpac.

Then, early on Thursday morning, all eyes will be on an announcement from the US Federal Reserve after its two day policy meeting.

The focus will be on any hints as to the timing of a Fed interest rate hike some time in 2015.

“It seems likely they’ll retain their view that it will be a considerable period of time before rate lift off,” de Garis said.

AAP

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