Dollar rises on business data


calculatorThe Australian dollar remains above 87 US cents following a surprisingly strong business conditions survey and weaker data out of the US.

At 0700 AEDT on Wednesday, the Australian dollar was trading at 87.72 US cents, down from 87.76 cents on Tuesday.

Business conditions were up seven points to +4 points in December, according to the National Australia Bank monthly business survey.

The surprise jump was supported by low interest rates, higher asset prices, and the lower Australian dollar, NAB economists said.

Westpac senior market strategist Imre Speizer said the Australian dollar rallied as high as 88.21 US cents overnight on the back of disappointing US data.

US durable goods orders fell 4.3 per cent in December, an “unexpectedly weak” result, Mr Speizer said.

“Having stabilised with the improved global risk sentiment, (the Australian dollar’s) behaviour around the recent range will be instructive,” he said.

“Below 86.65 US cents argues for a further large decline, while above 88.20 US cents suggests a move to 88.90 cents.”


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