Australian dollar weighed down by weak GDP figures

THE Australian dollar is barely keeping its head above 84 US cents after disappointing economic growth figures.

THE Australian dollar is barely keeping its head above 84 US cents after disappointing economic growth figures triggered expectations of another interest rate cut.

At 0700 AEDT on Thursday, the local currency was trading at 84.00 US cents, down from 84.01 cents on Wednesday.

The Australian dollar fell as low as 83.89 US cents, its lowest level since July 2010, following the release of the GDP figures on Wednesday.

The economy grew by just 0.3 per cent in the September quarter — much weaker than the 0.7 per cent economists were expecting. Annual growth came in at 2.7 per cent, below expectations of 3.1 per cent.

The shock slowdown in the economy sparked more talk of another rate cut from the Reserve Bank, which weighed on the currency. All eyes would now be on retail sales figures being released at 1130 AEDT on Thursday, National Australia Bank senior economist David de Garis said.

“It’s only three months ago that the Australian dollar had a 94 US cent handle,” Mr de Garis said.

“The market will be paying close attention to this morning’s retail trade report for October.” Retail sales are forecast to have edged 0.1 per cent higher in October, a retreat from September’s massive gains when the launch of the iPhone 6 lifted spending by 1.2 per cent — the strongest rise in almost five years.

Currency snapshot at 0700 AEDT on Thursday

One Australian dollar buys:

* 84.00 US cents, from 84.01 cents on Wednesday

* 100.66 Japanese yen, from 100.14 yen

* 68.25 euro cents, from 67.90 euro cents

* 108.27 New Zealand cents, from 107.89 NZ cents

* 53.56 British pence, from 53.70 pence

One euro buys:

* 123.09 US cents, from 123.74 cents

* 147.50 Japanese yen, from 147.49 yen

One US dollar buys:

* 119.82 Japanese yen, from 119.19 yen

(*Closes taken at 1700 AEDT previous local session)

Source: IRESS

Originally published as Australian dollar weighed down by weak GDP figures