Australian dollar weaker as euro zone data disappoints

THE Australian dollar is lower, weighed down by disappointing euro zone economic growth figures.

On Friday morning, the dollar was trading at 93.57 US cents.

THE Australian dollar is lower, weighed down by disappointing euro zone economic growth figures.

At 0700 AEST on Friday, the local unit was trading at 93.57 US cents, down from 93.90 cents on Thursday.

During the offshore session, the currency fell as low as 93.27 US cents, its lowest level since May 8.

Gross domestic product (GDP) for the 18 nation euro zone grew by 0.2 per cent in the March quarter, well short of market expectations of 0.4 per cent growth.

OM Financial senior client adviser Mark Johnson said market sentiment turned a little sour overnight, and the European data did not help.

“The Australian dollar rallied a little bit overnight then came off, probably caught up with the risk aversion tone,” he said. “Equity markets came off and the risky currencies like the kiwi the Aussie sold off too.

“We had a weaker GDP print and the European Central Bank (ECB) downgraded its forecasts.” Markets are now waiting for a speech from US Federal Reserve chair Janet Yellen to the US Chamber of Commerce in Washington this morning.

Originally published as Australian dollar weaker as euro zone data disappoints