The Australian dollar remains above 94 US cents after a batch of disappointing US economic data weakened the greenback.

At 0700 AEST on Monday, the local currency was trading at 94.23 US cents, down from 94.36 cents on Friday.

The US dollar has been weaker since the release of disappointing data last week.

US consumer spending, which accounts for more than two-thirds of the country’s economic growth, rose a mere 0.2 per cent in May.

Economic growth figures showed the US economy shrank at an annual rate of 2.9 per cent in the first quarter of 2014, the sharpest contraction in five years.

“The US dollar struggled against all major currencies,” said National Australia Bank senior economist, David de Garis.

It’s a big week for the Australian dollar with the Reserve Bank of Australia’s interest rate decision on Tuesday and economic data, including retail sales figures, later in the week.

NAB expects a weak outcome when retail figures are released on Thursday, de Garis said.

“With consumer sentiment taking a hit in the leadup to and after the budget, we suspect a soft outcome,” he said.

AAP