The Australian dollar is lower after positive figures out of the US strengthened expectations of an economic recovery there, and weak Chinese data pointed to a slow-down in the Asian powerhouse.
At 0700 AEST on Thursday, the local unit was trading at 91.64 US cents, down from 92.57 cents on Wednesday.
The Australian dollar fell sharply on Wednesday after data showed manufacturing activity in China slowed to an 11-month low in July.
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Overnight, the greenback was given a boost with figures showing sales of new US homes beat expectations in June and were at their highest level in five years.
Westpac New Zealand senior market strategist Imre Speizer said the pressure on the Australian dollar from Wednesday’s Chinese data was intensified by the strength in the US dollar on the back of the strong data.
“The good US data pushed up the US dollar and it pushed down the Australian/US dollar cross rate,” Speizer said.
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