$A falls on RBA sales, weak global markets
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SYDNEY, Nov 16 AAP
November 16 2012, 07:25AM
The Australian dollar is lower, after reports of large currency sales by the central bank and weak global market performances.
At 0700 AEDT on Friday, the local unit was trading at 103.29 US cents, down from 103.58 cents on Thursday.
Affix senior trader Stuart Ive said large sales of the Aussie dollar by the central bank plus weak performances on global markets had impacted the currency.
"It's a continuation of the trend we saw yesterday," he said.
"We had data from the RBA (Reserve Bank of Australia) showing that there's been a significant outflow of Australian dollars.
"That added to a downward movement in the currency.
"But we've also seen stock markets decline globally, as well as metal commodity markets."
The RBA on Thursday said it increased sales of the Aussie dollar in October, with foreign central banks some of the main buyers.
However, Mr Ive said, weak US housing and manufacturing data overnight stopped the Aussie dollar from falling too low.
"They had their PhillyFed manufacturing, data which was much worse than expected," he said.
"Plus, their weekly jobs data got horrendously distorted by the superstorm (Sandy).
"That added a bit of support for the Australian dollar."
US PhillyFed data showed a slump in manufacturing activity in the US mid-Atlantic area in November - much attributed to Superstorm Sandy.
The business activity index fell to -10.7, from 5.7 the month before.
Meanwhile, weekly unemployment claims rose to 439,000 - its highest in 18 months - also influenced by the storm.
With little other data to impact on the market, Mr Ive said he didn't expect the dollar to move much on Friday.