The Australian dollar fell 0.70 US cents overnight as the US dollar rallied.
Westpac New Zealand senior market strategist Imre Speizer told Business Spectator the Aussie’s fall could be attributed to better news in the superpower’s economy. This week’s US retail and employment figures indicate the world’s largest economy is recovering.
“It (the Australian dollar) was sold because the US dollar was bought,” Speizer says.
The US economy has had several days of good news and investors are buying more of the greenback.
“We have seen a very strong run of (US) data and the market is now starting to price in a sustainable US recover,” Speizer says.
US inflation figures come out on Friday. “If we get good data you’ll get more of the same: US dollar goes up, Aussie dollar goes down,” Speizer says.