The Australian dollar has been weighed down by its US counterpart’s strength, despite the release of encouraging domestic retail sales and building approvals data.
At 1700 AEDT on Thursday, the local unit was trading at 88.69 US cents, down from 89.25 cents on Wednesday.
The Australian dollar started the day on a weak note, drifting below 89 US cents during the morning before receiving a boost from the strong data at 1130 AEDT.
Australian retail spending rose 0.7 per cent to $22.459 billion in November, the seventh consecutive month of growth, while building approvals data showed a sharp rise in the number of approvals for detached houses.
But the Australian dollar’s small rally was shortlived, unable to compete with the greenback’s strength, Westpac senior currency strategist Sean Callow said.
“We had the good news on the economy which indicated that the Reserve Bank’s low interest rates were stoking growth in retail spending and construction,” Mr Callow said.
“But then there was US dollar buying across the board and the Aussie got caught up in that.
“Now, it’s just licking its wounds.”