The Australian dollar is trading lower today on the back of weak local data and stronger than expected numbers out of the US.
At 6.56pm (GMT) the Aussie dollar was trading at US73.60c down from US73.86c in yesterday’s trade.
The National Australia bank business conditions survey hit the market at 3 earlier today, down from 5 last month which shows the recent rate cut by the reserve bank of Australia did little to improve the sector and more cuts may be needed.
"The RBA's cut to interest rates did not help lift business confidence as we had hoped, even as sales activity continues to improve," NAB Group Chief Economist Alan Oster, said.
"Uncertainty around the upcoming election might be a factor here, but mixed results across industries suggest that other factors are at play" he added
Also putting pressure on the Australian dollar was the latest retail sales figure from the US which surprised to the upside, coming in at 0.5 percent against expectations for a figure of 0.3 percent.
The numbers may give the US Federal Reserve some ammunition in which to raise interest rates as we head into next month’s monetary policy meeting.
After the recent disastrous non-farm payrolls report many were expecting a disappointing retail sales figure but this release shows the sector to be in good shape.
"The strength of the May retail sales report should provide plenty of comfort to those concerned that the recent slump in payrolls would be followed by a downturn in activity," said Steve Murphy, U.S. economist at Capital Economics.
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