Manufacturing News

Dollar heading back up to 77 cents, say analysts

The Australian dollar was from yesterday’s close of US 76.3 cents, following the release of weak US productivity data.

AAP reports that the dollar was US 76.73 cents at 7 am. Westpac senior market strategist Imre Speizer said that the rise was influenced by the longest run of US productivity decreases since 1979.

“This pushed US interest rates lower overnight, which rubbed off the US dollar which also fell,” he told AAP.

“Risk appetite was also strong last night which helped the Aussie.”

The dollar’s easing in the last year has been credited with Australia’s manufacturing’s improved fortunes. The sector enjoyed its 13th consecutive month of growth in July, according to the Australian Industry Group’s PMI.

 

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