GDP data pushes dollar to six-week low

DOLLAR falls to fresh six-week low after figures show the economy grew at a slower than expected rate in the three months to June.

THE dollar fell to a fresh six-week low after official figures showed the national economy grew at a slower than expected rate in the three months to June.

At 12pm AEST today, the currency was trading at 102.08 US cents, down from 102.78 US cents yesterday.
 
Figures released by the Australian Bureau of Statistics at 11.30am AEST showed national gross domestic product (GDP) grew by 0.6 per cent in the June quarter, below economists' expectations of a 0.8 per cent rise.

The figures pushed the dollar as low as 101.90 US cents, its lowest level since July 25. However, Commonwealth Bank currency strategist Peter Dragicevich said, the currency recovered lost ground once traders looked more closely at the data.

"The initial reaction was a little bit of weakness in the Aussie when the headline number came up," he said. "But once people saw it was pretty much due to an upward revision to the previous quarter we ended up pretty much flat with where we were before the data."

Mr Dragicevich said the dollar had fallen overnight as concern about the global economy saw investors move away from commodity currencies and towards the US dollar.

Meanwhile, Australian bond futures prices were higher at noon. At 12pm AEST today, the September 10-year bond futures contract was trading at 97.010 (implying a yield of 2.990 per cent), up from 97.000 (3.000 per cent) yesterday.

The September three-year bond futures contract was 97.620 (2.380 per cent), up from 97.580 (2.420 per cent).