The Australian dollar has dipped lower after weak data out of the US, UK and Europe re-ignited concerns about global economic growth.
Early on Wednesday, the local currency was trading at 87.08 US cents, down from 87.85 cents on Tuesday.
“(There was) further concern for the global economy overnight, after poor data in Germany, Europe, the UK and the US,” National Australia Bank senior economist Spiros Papadopoulos said.
Soft UK inflation figures, disappointing small business figures from the US and a worrying sentiment survey out of Germany sparked the concerns.
“The German economy is losing traction very quickly and there is a real prospect that it could contract again in the third quarter,” Papadopoulos said.
Meanwhile, a local NAB business survey on Tuesday was also disappointing, showing a dip in business confidence and conditions in September.
“The survey suggests the economy continues to run at a sub-trend pace and that unemployment will rise further, keeping the Reserve Bank (interest rate) on hold for a long time,” Papadopoulos said.
The Australian share market looks set to open flat as Wall Street trades in positive territory.
Locally, in economic news on Wednesday, the Australian Bureau of Statistics releases new motor vehicle sales figures for September, while the Westpac/Melbourne Institute Survey of Consumer Sentiment is due out.
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Shares on Tuesday rebounded as a surge in iron ore prices boosted the miners and bargain hunters piled into other sectors.
The benchmark S&P/ASX200 index was 51.9 points, or 1.01 per cent, at 5,207.4 points.
The broader All Ordinaries index was up 50.9 points, or 0.99 per cent, at 5,204.0 points.
