Australian dollar falls as US data surprises

THE Australian dollar has fallen sharply after the release of some positive US economic data.

Australian dollar falls as US data surprises

THE Australian dollar has fallen sharply after the release of some positive US economic data.

At 0700 AEDT on Friday, the local dollar was trading at 77.94 US cents, down from 78.47 cents on Thursday.

Falling petrol prices pulled the US consumer price index down 0.7 per cent in January and the annual rate was down 0.1 per cent, the first year-on-year decline since October 2009.

Meanwhile orders for US durable goods in January rose for the first time in three months.

Westpac senior market strategist Imre Speizer said the economic figures pushed the US dollar higher against most currencies including the Australian dollar.

“While headline inflation fell to 0.1 per cent, core inflation (excluding petrol and food) remained 1.6 per cent higher year on year, supporting the Fed Chair’s view that the current weak inflation is transitory,” he said.

“Core CPI was not the only surprise, durable goods orders also beat expectations.” Mr Speizer expects falling commodity prices and expectations that the US Federal Reserve will raise its interest rate will keep the Australian dollar under pressure in the coming months.

Originally published as Australian dollar falls as US data surprises