Dollar slides to three month low

 

dollar,coin,moneyThe Australian dollar has fallen to a fresh three-month low as declining commodity prices and a rally in the US dollar puts the currency under pressure.

At 0700 AEDT on Thursday, the local unit was trading at 90.77 US cents, down from 91.26 cents on Wednesday.

In overnight trade, it fell as low as 90.65 US cents, its weakest level since September 4.

Bank of New Zealand currency strategist Mike Jones said encouraging economic data from the US helped support the greenback.

New orders for durable goods in the US fell two per cent in October, which met market expectations, while weekly unemployment claims figures fell to a two-month low.

“The commodity currencies all suffered at the hands of the stronger US dollar,” Jones said from Wellington.

“After spending most of the night dribbling lower, the US dollar staged a noticeable rebound early this morning.”

“This has taken the edge of most of the major currencies,

“Admittedly, price action has been somewhat lacklustre as volumes thin out ahead of Thursday’s US Thanksgiving holiday.”

The main focus for the market on Thursday will be the release of official business investment figures for the September quarter, which should give a clearer picture on the slowdown in mining investment in Australia.

AAP

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