Dollar lower after GDP data

The Australian dollar is weaker following news of disappointing economic growth in the first three months of 2013.

Dollar lower after GDP data

At 12pm AEST today, the currency was trading at 96.17 US cents, down from 96.93 cents yesterday.

Commonwealth Bank currency strategist Joseph Capurso said the Australian dollar fell following the release of gross domestic product (GDP) data at 11.30am AEST.

Australian Bureau of Statistics figures show GDP grew by 0.6 per cent in the March quarter, below the 0.8 per cent rate economists had expected.

"The Aussie has been a little bit heavy today and it weakened further after that data," he said.

Mr Capurso said the Australian dollar was likely to weaken further, possibly dropping to around 95.50 US cents by the end of the week.

Meanwhile, Australian 10-year bond futures prices were higher at noon, while three-year futures were unchanged.

At 12pm AEST, the June 10-year bond futures contract was trading at 96.570 (implying a yield of 3.430 per cent), up from 96.560 (3.440 per cent) yesterday afternoon.

The June three-year bond futures contract was at 97.330 (2.670 per cent), the same level as yesterday.

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