Dollar lower after GDP figures

THE dollar was lower today after the December quarter national accounts failed to wow markets.

THE dollar was lower today after the December quarter national accounts failed to wow markets.

At midday (AEDT), the local unit was trading at US101.37c, down from US101.64c yesterday.

Since 7am, the dollar traded between US101.22c and US101.48c.

CMC Markets foreign exchange dealer Tim Waterer said the local unit fell from US101.45c to US101.22c in the minutes after the national accounts were published at 11.30am.

"The actual result didn't miss the forecast," he said.

"But the mood the market is in today, anything less than 0.8 to 0.9 per cent ... any long positions are being unwound."

The economy grew by 0.7 per cent in the December quarter, seasonally adjusted, the national accounts showed.

This compared with an downwardly revised 0.1 per cent in the September quarter.

Over the year to the end of December, gross domestic product grew at 2.7 per cent, seasonally adjusted in chain volume terms, the Australian Bureau of Statistics said.

The median market forecast was for GDP growth of 0.6 per cent in the December quarter, and an expansion of 2.6 per cent in the year to the end of December, according to an AAP survey of 15 economists.

Meanwhile, the bond market was firmer.

At midday on the ASX 24, the March 10-year bond futures contract price was 94.500 (implying a yield of 5.500 per cent), up from yesterday's close of 94.475 (5.525 per cent).

The March three-year bond futures contract price was at 94.920 (5.080 per cent), up from 94.880 (5.120 per cent).