CANBERRA: The Australian dollar has jumped past US73c on a batch of soft US data after earlier touching a new six-year low.
At 7.10am (AEST) on Saturday, the currency was trading at US73.01c, up from US72.84c at the close of local trade on Friday.
The local unit briefly dipped to a new six-year low of US72.35c during the offshore session as investors eyed weakening commodity prices and weak European data.
However, it made a sharp turnaround upon the release of wage inflation numbers in the US, moving as high as US73.67c on the news.
The employment cost index, which serves as a good guide for both inflation and labour market slack, eked out a meagre gain of 0.2 per cent in the second quarter, its worst result in over 30 years. It also fell well short of expectations for a 0.6 per cent lift.
The numbers reduced the likelihood of a rate hike in September from the US Federal Reserve, dampening the appetite for the US dollar in the process.
The world’s reserve currency was further weakened by a modest report on consumer confidence that also failed to meet market expectations.
