Australian dollar up on weak US data.

Financial and commodity markets analytics

The Australian dollar is trading stronger today after another round of disappointing data from the US
At 11.30am(GMT) the Aussie dollar was trading at US77.81c up from US77.28c on Thursday. AEST on Friday, 
New home sales from the US fell 11.4 per cent in March to a yearly number of 481,000, the level since November and clearly show that American consumers are not completely confident in the economy.
The US Purchasing Managers' Index that measures factory output fell in April showing a lack of confidence in the business economy.
OANDA Asia Pacific senior trader Stephen Innes said the data pushed the US dollar lower and the local currency also received a boost after the Reserve Bank of New Zealand played down fears that it will raise interest rates in the nearest future.
"The real action was occurring on the Australian dollar/New Zealand dollar cross rate which moved sharply higher," he said.
"Comments from RBNZ deputy governor (John) McDermott that weak demand and prices would prompt no considerations for a rate hike at present, and that monetary policy will remain stimulatory sent the Kiwi into a free fall." He added
The durable goods report from the US is due out later today which will show if the Australian dollar sinks or swims.


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