THE Australian dollar sank below US90 cents overnight for the first time since September 2010, as good US economic data and a Federal Reserve announcement provided mixed messages for currency investors.
At 7am AEST on Thursday, the local unit was trading at US89.82 cents, down from US90.16 cents at yesterday's local close. In offshore trading last night the Aussie fell as low as US89.35 cents, its weakest level since September 2010.
The dollar lost ground early in the overnight session when the US Commerce Department reported that the American economy grew 1.7 per cent in the June quarter, above the 1.1 per cent expected by analysts.
A few hours later, the local currency recovered most of its losses after the Federal Reserve said it would keep going with its economic stimulus plan. The market had been expecting the central bank to start winding down its $US85 billion-a-month bond-purchase program in September.
