SYDNEY: The Australian dollar has slipped below US77c in offshore trade, extending heavy losses yesterday after disappointing retail sales data.
At 7am (AEST), the local unit was trading at US76.86c, down from US77.20c at the close of local trade.
Over the past 24 hours the currency has seen a high of US77.89c and a low of US76.63c.
The local currency saw momentum halted yesterday after a strong start to the week as the RBA opted to keep rates on hold on Tuesday and data on Wednesday showed the economy expanded at a faster clip than expected in the first quarter.
The falls were driven by weak retail sales numbers, with the flat reading for April coming in below expectations for a 0.3 per cent lift in spending.
The decline was exacerbated by news the trade deficit had jumped to a record $3.89 billion in April, following a revised deficit of $1.23bn in March.
“The currency was hit hard by a larger than expected trade deficit and flat consumer spending,”
said BK Asset Management managing director Kathy Lien.
