Dollar near US76c in early afternoon

The local unit has edged back from morning highs but remained supported by a softer greenback.

The Australian dollar has remained close to US76 cents in early afternoon, despite edging back from morning highs spurred by a weaker greenback and softer-than-expected US economic data.

At 1pm (AEST) on Wednesday, the local unit was trading at US75.98 cents, up from US76.08c on Tuesday.

The Aussie rose above US76c overnight after weaker-than-expected US car sales figures and below-target inflation spurred concern about economic growth in the world’s largest economy.

Analysts said the disappointing data had reduced expectations of a Federal Reserve interest rate rise, drove the greenback lower and other currencies, including the Australian dollar, higher.

The local currency has shed some gains but continues to perform strongly despite the Reserve Bank of Australia’s cash rate cut on Tuesday.

AAP