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The US Commerce Department report of a meager 0.4 percent rise in consumer spending set the Australian dollar to start off at a lower value.
The local currency is trading at $US0.8916/23. The value is down from Monday's close of $US0.8979/82.
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The US consumer spending figure of 0.4 percent in July and income increase of 0.2 percent were not sufficient to curb apprehensions about the American economy.
Movement on the trading floor today is expected after US president Barack Obama assured his constituents of continuing efforts to stimulate US growth. The US leader mentioned new measures which he plans to lay out in the weeks ahead.
According to White House Press Secretary Robert Gibbs, the new measures are designed to “create an environment where the private sector is not simply investing but also hiring.” In previous weeks, the US president mentioned proposed cuts in taxes, increasing investments in renewable energy, and extending financing to small businesses.
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The Australian market's sentiments over the recent speech could downplay the consumer spending figures. Moreover, the local economic data such as balance of payments, retail trade, and building approvals are expected weigh in today's trading.
Westpac New Zealand senior market strategist Imre Speizer said, “You've got a lot of Australian data out today which are very important. There's a lot of event risk around how the Aussie behaves on the day.”
