The Australian dollar has drifted lower following positive US unemployment data.

At 0700 AEST on Friday, the local currency was trading at 94.22 US cents, down from 94.38 cents on Thursday.

New claims for US unemployment insurance benefits slid to an eight-year low last week, dropping 19,000 to 284,000, the US Labour Department reported overnight.

The data weighed on the Australian dollar, which lost ground after Thursday’s rally on the back of strong Chinese manufacturing numbers, National Australia Bank senior economist Spiros Papadopoulos said.

“The Australian dollar has lost ground overnight, currently near 94.20 US cents, well below yesterday’s high of 94.71 after the flash HSBC Chinese manufacturing PMI for July,” he said.

The preliminary HSBC purchasing managers’ index released on Thursday rose to 52.0 in July from 50.7 in June.

It’s expected to be a quiet day for the Australian dollar, with little economic data to drive the currency.

AAP