At noon (AEDT) Thursday, the local unit was trading at 72.26 US cents, up from 72.72 cents on Wednesday.
During the overnight session, the currency fell from its one month high, after oil, gold and copper prices fell in offshore trade.
Late in the morning it fell further, to an intraday low of 72.17 US cents, after new local economic data showed that there was a 9.2 per cent fall in business investment in the September quarter.
Claims for jobless benefits fell a more than expected to 260,000 last week, however other reports suggested American consumers were not in a spending mood, with consumer spending increasing just 0.1 per cent in October.
St George senior economist Janu Chan said trade in US and Australian bonds was quiet ahead of the Thanksgiving public holiday in the US and next month’s interest rate decision by the Federal Reserve.
“The data was largely mixed relative to expectations, but continue to signal that the US economy should withstand an interest rate hike from the Federal Reserve as soon as December,” she said.
“US treasuries tracked sideways, as investors await the outcome for the key interest rate decision by the Federal Reserve.”
Chan said with the futures market pricing in a 70 per cent chance that the Fed will raise interest rates in December, US Treasuries are likely to remain rangebound until the mid-December meeting unless economic data significantly disappoints.
Locally on Thursday, the Australian Bureau of Statistics releases business investment figures for the September quarter, a key indicator for next week’s economic growth figures.
At 8.30am (AEDT) on Thursday, the December 2015 10-year bond futures contract was trading at 97.115 (implying a yield of 2.885 per cent), up from 97.095 (2.905 per cent) on Wednesday.
The December 2015 three-year bond futures contract was at 97.900 (2.100 per cent), up from 97.890 (2.110 per cent).
At 6.50am (AEDT) on Thursday, the December share price index futures contract was down five points at 5,200.
Oil, gold and copper prices retreated overnight following the release of a mixed batch of US economic data.
Locally on Thursday, the Australian Bureau of Statistics releases business investment figures for the September quarter, a key indicator for next weeks economic growth figures.
In equities news, the following companies are holding annual general meeting on Wednesday; Woolworths, Bank of Queensland, Primary Health Care, and online jobs advertiser Seek.
In Australia, the market on Wednesday was pulled more than half a percentage point lower by the big four banks, losing ground for a second straight session.
The benchmark S&P/ASX200 index was down 32.7 points, or 0.63 per cent, at 5,193.7.
The broader All Ordinaries index was down 31.8 points, or 0.6 per cent, at 5,245.2.
At 6.30am AEDT on Thursday, the local unit was trading at 72.48 US cents, down from 72.72 cents on Wednesday.
The Australian dollar is a little lower in quiet trade ahead of the Thanksgiving public holiday in the US.
WASHINGTON – Sales of new single-family homes in the United States rebounded in October from a September slump, as prices fell year-over-year.
Americans remained wary consumers in October as spending rose at the slowest pace this year for the second straight month, Commerce Department data shows.
Fewer American workers filed for unemployment insurance benefits last week as jobless claims continued to trend at a four-decade low in an improving jobs market.
The United States has sanctioned a Syrian businessman who it says is a middleman for oil sales between Islamic State and the Syrian government, the latest salvo in an effort to cut off the flow of funds to the militant group.
BEIJING – An initial group of overseas central banks and other institutions, including the Reserve Bank of Australia, has been allowed to enter China’s interbank foreign exchange market.
LONDON – Britain has taken the axe to spending, fleshing out plans to slash welfare and eliminate the deficit, but has dropped a controversial plan to cut tax credits for the poor.
Britain has scrapped plans to spend up to STG1 billion ($A2.08 billion) to help commercialise the technology for capturing carbon dioxide emissions from power plants and storing them underground, putting two major projects at risk of being cancelled.
NEW YORK – US securities regulators have filed charges against an ex-Goldman Sachs information technology employee who allegedly made more than $US460,000 ($A634,745.41) in illegal insider trades before fleeing to China.
PARIS – US rating agency Standard and Poor’s says a budding eurozone recovery is gathering steam thanks to consumers loosening their purse strings.
BRASILIA – Brazilian police have arrested a senior ruling party senator and a billionaire investment banker in connection with a probe into the huge corruption scandal at state oil giant Petrobras.
BERLIN – A German federal state says it has transferred details of secret Swiss bank accounts with assets worth four billion francs ($A5.4 billion) to Athens as part of efforts to clamp down on Greek tax cheats.
The cabin crew union at Lufthansa has called off a strike planned for this week after progress was made in talks with management over retirement and pension benefits.
ASX Stocks to watch
BOQ – BANK OF QUEENSLAND – down two cent, or 0.14 per cent, at $14.26: Bank of Queensland is holding it annual general meeting on Wednesday.
PRY – PRIMARY HEALTH CARE – down eight cents, or 2.45 per cent, at $3.18: Medical centres operator Primary Health Care holds its annual general meeting.
RFG – RETAIL FOOD GROUP – down 10 cents, or 2.36 per cent, at $4.14: Retail Food Group, the company behind Donut King, Gloria Jean’s cafes and Brumby’s bakeries, holds its annual general meeting
SEK – SEEK – down five cents, or 0.35 per cent, at $14.35: Online jobs advertiser Seek annual general meeting.
WOW – WOOLWORTHS – up 33 cents, or 1.37 per cent, at $24.38: Supermarket giant Woolworths holds its annual general meeting.
AAP
