Dollar sinks lower

 

coins,dollar,money,silver,goldThe Australian dollar is weaker against a strengthened greenback, despite disappointing economic data out of the US.

At 0700 AEST on Tuesday, the local currency was trading at 92.97 US cents, down from 93.22 cents on Monday.

All US data released overnight disappointed the market, BK Asset Management managing director Kathy Lien said.

But the US dollar still managed to strengthen.

“New home sales dropped 2.4 per cent, manufacturing activity in the Dallas region expanded at the slowest level since March and according to Markit Economics, the service sector and economy in general lost momentum in the month of August,” Ms Lien said.

“This leaves everyone wondering why US assets are so attractive and the answer is because there are no better alternatives.

“The lack of better alternatives is the main reason why investors are piling into all US assets from stocks and Treasuries to the dollar.”

AAP

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