The Australian dollar is likely to come under further pressure next week as more strong data out of America increased the chances of a rate hike from the US Federal Reserve.
The Aussie dollar finished the week of poorly at US75.08c after threatening to break the US77c mark earlier in the week.
The latest Gross domestic Product figures from the US came in at 1.4 percent on Friday, well above analysts’ predictions for a number of 1 percent, fueled by a rise in consumer spending on goods and services and shows the economy to be in good shape.
Up until last week, many had written of the chance of a rate hike by the US Fed until at least June over fears it may derail the fragile recovery of the US economy.
With four out of five Fed board members now calling for the US central bank to raise rates along with strong GDP data the case to tighten momentary policy is strengthening.
Next week will see more key data out of the US starting on Monday with the release of the core personal consumption index which may show further evidence of consumer confidence, and towards the end of the week the unemployment rate and Non-farm payrolls figure.
Further pressure on the Australian dollar is expected if the numbers satisfy investors.