Australian dollar higher against weakened greenback

On Friday morning, the dollar was trading at 94.15 US cents.

On Friday morning, the dollar was trading at 94.15 US cents. Source: Supplied

THE Australian dollar is higher against the weakened greenback following more disappointing economic data out of the US.

At 0700 AEST on Friday, the local currency was trading at 94.15 US cents, up from 94.12 cents on Thursday.

Consumer spending, which accounts for more than two-thirds of US economic growth, rose a mere 0.2 per cent in May, official figures showed, while the US Federal Reserve’s preferred measure of inflation remained subdued.

That followed disappointing economic growth figures released earlier in the week.

“The greenback was under pressure throughout the US trading session,” BK Asset Management managing director Kathy Lien said. “Even though St Louis Fed president James Bullard said the markets should be pricing in rate increases based on (Federal Reserve head) Janet Yellen’s recent comments, Treasury yields declined, indicating that investors are not convinced that the central bank is ready to tighten.

“We expect trading ranges in the foreign exchange market to remain intact.”

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