The Bull

Wednesday 20

June, 201811:32 PM



$A slips against $US on economic data

$A slips against $US on economic data

The Australian dollar falls against its US counterpart which has rallied on developments in a growing trade conflict between the US and its commercial partners.

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By AAP 06.06.2018 07:05 AM

The Australian dollar is down against its US counterpart which has enjoyed a rally as more strong US economic data prompts positive sentiment.

At 0635 AEDT on Wednesday, the Australian dollar was worth 76.15 US cents, down from 76.38 US cents on Tuesday.

Westpac said more US economic data and jobs data confirmed stronger growth in the second quarter.

"The service sector PMIs (were) resoundingly strong, while job openings hit record highs...Markit's final May PMI saw a notable upward revision too, to 56.8 from a preliminary read of 55.7 - a three-year high. (and) US job openings in the Job Openings and Labor Turnover Survey rose to a record high 6.7 million in April."

However, the US dollar index ended up going backwards, they said.

"The US dollar index is down 0.1 per cent on the day," its analysts said in a Wednesday morning note.

"The AUD fell from 0.7650 to 0.7595 before consolidating."

But Westpac believed the local currency should move higher on Wednesday, although analysts urged caution with gross domestic product data due out at 11.30 am AEST.

"Recent economic data has been supportive, and momentum is positive, arguing for a higher AUD towards 0.7700 if risk sentiment remains upbeat. Today's GDP data poses significant event risk."

The Aussie dollar is also down against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEDT ON WEDNESDAY

One Australian dollar buys:

* 76.15 US cents, from 76.38 on Tuesday

* 83.60 Japanese yen, from 83.85 yen

* 65.00 euro cents, from 65.26 euro cents

(*Currency closes taken at 1700 AEDT previous local session)

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