The Australian dollar dropped sharply to finish of the week after a strong round of data raised speculation about an interest rate hike next month from the US Federal Reserve.

At the end of the week the Aussie dollar landed at US71.29 down from US72.35 the previous day.

Quarterly GDP numbers from the US came in at 1 percent against analysts’ expectations of a 0.8 percent rise, while the yearly figure also came in at 1 percent more than double the predicted figure of 0.4 percent.

The personal consumption index also surprised investors coming in at 1.7 percent against a consensus of 1.2 percent, with investors now placing their bets on an interest rate hike from the US Federal reserve next month.

With the general health of the world economy under question many believed that the Fed would hold off raising rates, but with such strong data released locally they will have to sit up and take notice.

 Now the Non-farm payrolls figure as well as the unemployment rate due out next week is of significant importance and another strong round of news will increase the chance of a rate hike dramatically.

Data out Monday during the Asian session includes the latest new home sales figure as well as the TD securities inflation report which may paint a picture of how the Aussie dollar will perform throughout the week.