Poor US data hit $A
The Australian currency started weaker on Friday after "awful" US reports saw investors worry a double-dip recession is impending.
At 7am (AEST) today, the local unit was exchanging at $US.8926/28, lower from Thursday's finish of $US.8984/88.
Since 5pm yesterday, the Aussie traded from $US.9018 to $US.8906.
Poor US jobs and manufacturing data announced during offshore trade weakened investor sentiment for risk and sent the domestic currency to its inter-session low, according to Bank of New Zealand currency strategist Mike Jones.
The US Labour Department revealed the number of Americans filing new weekly claims for jobless benefits soared unexpectedly to 500,000, the highest level in nine months, while the Philadelphia Federal Reserve said its index of current activity plunged for the first time since July 2009. The index slid to -7.7 from a 5.1 in July.
New orders and shipments activity also lagged in August, with index figures for new orders at -7.1 and shipments at -4.5.
"The Aussie dollar continued on its path south overnight," Mr Jones said.
"There are double-dip recession fears in the US after some pretty awful data. Commodity markets fell and equity markets fell."
At 12.50pm today, Reserve Bank of Australia deputy governor Ric Battellino is to give a speech to the Moreton Bay Better Business Luncheon in Queensland, titled Twenty Years of Economic Growth.
Investors should closely watch the speech as it was the only significant piece of domestic data due during the local session, Mr Jones said.