Dollar knocked by trade data
At 0700 AEST on Thursday, the local currency was trading at 94.44 US cents, down from 94.63 cents on Wednesday.
The Australian dollar reached 95.06 US cents early on Wednesday, its highest level since November, but took a hit after official figures later in the day showed Australia’s trade deficit reached $1.9 billion in May.
The currency came under further pressure overnight as the US dollar was boosted by stronger data, National Australia Bank senior economist David de Garis said.
The US dollar rallied following the release of a surprisingly strong June private employment report, he said.
Payroll processor ADP said private employers added 281,000 jobs in June, up from 179,000 in the previous month.
“Some US dollar strength was the key theme overnight with markets paying attention to the stronger US data,” Mr de Garis said.
“The Australian dollar was caught up in the backwash, giving up a little more ground through the night after its post-trade deficit blowout losses yesterday.”
Investors will now turn their attention to retail sales and building approvals figures to be released by the Australian Bureau of Statistics on Thursday ahead of the all-important US non-farm payrolls later in the evening.
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