The Aussie dollar has plunged on the back of mixed economic data.
At 0700 AEST on Friday, the local unit was trading at 77.38 US cents, down from 78.08 cents on Thursday.
The Aussie dollar rose to a fresh 10-month high of 78.34 US cents in overnight trade, before losing ground in the face of a stronger greenback.
BK Asset Management managing director of FX strategy Kathy Lien said an official report released on Thursday (US time) showing US jobless claims last week at their lowest level since 1973 boosted the greenback against commodity currencies like the Australian dollar.
However, she said another report, earlier on Thursday, showed business confidence was steady Australia in the March quarter.
‘The Australian and New Zealand dollars also traded lower versus the greenback amidst mixed data,’ Ms Lien said in a note on Friday.
‘No economic reports are scheduled for release from either country (on Friday) and taking a look at the charts, we could see another 50-100 pip decline in both currencies versus the US dollar.
However, she added that the Australian dollar’s decline may only be temporary.
‘A more deeper correction would be needed, however, to put the uptrends into question,’ Ms Lien added.
At 7am on Friday, 22 April one Aussie dollar was buying:
77.38 US cents, from 78.08 cents on Thursday*
84.69 Japanese yen, from 85.62 yen
68.55 euro cents, from 69.13 euro cents
111.94 New Zealand cents, from 112.12 NZ cents
54.03 British pence, from 54.44 pence
*Currency closes taken at 1700 AEST previous local session
AAP
