Dollar hits six-week low after retail data

THE Australian dollar has fallen to a fresh six-week low after the release of weaker-than-expected retail data.

Australian dollar

THE Australian dollar has fallen to a fresh six-week low after the release of weaker-than-expected retail data.

At 12.00 AEST on Monday, the currency was trading at 102.54 US cents, down from 103.05 US cents on Friday.

The currency fell as low as 102.40 US cents following the release of retail sales figures at 1130 AEST.

Australian retail spending fell 0.8 per cent in July, data released by the Australian Bureau of Statistics on Monday show.

That was a sharp turnaround from a 1.0 per cent rise in spending in June.

Easy Forex senior dealer Francisco Solar said the retail data added to the tide of negative sentiment weighing on the Australian dollar.

"It just adds to this negativity that's starting to creep into the markets," he said.

"There's quite a number of factors working against it (the Australian dollar)."

The Australian dollar has been on a downwards slide since miner BHP announced two weeks ago it would shelve its multi-billion dollar Olympic Dam mine expansion, raising fears the mining boom was over.

The release of Chinese economic data, on Saturday, showing a further contraction in the country's important manufacturing sector, also had hurt the Australian currency, Mr Solar said.

Meanwhile, Australian bond future prices were higher at noon.

At 12.00 AEST on Monday, the September 10-year bond futures contract was trading at 97.055 (implying a yield of 2.945 per cent), its highest level in a month, up from 96.995 (implying a yield of 3.005 per cent).

The September three-year bond futures contract was at 97.620, (2.380 per cent), also a one-month-high, up from 97.550 (2.450 per cent).