THE Australian dollar has closed higher on Friday ahead of expected weak economic data from the United States.
At 1700 AEST on Friday, the Australian dollar was trading at $US0.9012/14, up from Thursday's local close of $US0.8991/93.
Since 0700 AEST, the domestic dollar traded between $US0.8975 and $US0.9022.
US gross domestic product (GDP) data out on Friday night AEST is expected to signal a further slowdown in the US economy, says Lee Wai Tuck, senior currency analyst with financial markets research group 4Cast.
"There are some concerns that US second GDP (growth) will come in about 2.7 per cent," he said from Singapore.
However, data from China over the weekend may put some downward pressure on the Australian dollar.
Mr Lee said the Chinese manufacturing data, due out Sunday, was expected to fall to its lowest in 17 months.
"All this has an impact on the Aussie dollar because of the fact that China is Australia's biggest trading partner," he said.
The Reserve Bank of Australia (RBA) is expected to keep interest rates on hold when its board meeting on Tuesday after inflation data this week came in below market expectations.
"With the RBA posting at 4.5 per cent on Tuesday, that will also be a negative for the Aussie (dollar)," Mr Lee said.
Meanwhile, Australia's sharemarket has suffered broad-based falls, as investors offload risk ahead of the weekend.
The benchmark S&P/ASX200 index closed down 30.6 points, or 0.68 per cent, at 4,493.5 points, while the broader All Ordinaries index lost 28.8 points, or 0.63 per cent, at 4,507.4 points.
On the Sydney Futures Exchange at 1615 AEDT, the September share price index contract was 29 points higher at 4,465 on a volume of 25,394 contracts.
Burrell Stockbroking adviser Daniel Manley said investors were taking money off the table ahead of the weekend.
"The banks are all down, resources are down, the energy sector is not doing too well either, even though oil didn't have too bad a night, so it is a broad-based fall," Mr Manley said.
The big banks were all pushed lower, and Macquarie Group fell more than three per cent, at $37.20, after it released commentary on its earnings.
"We are really seeing a complete lack of investor confidence (in Macquarie)," Mr Manley said.
Commonwealth Bank closed down 45 cents at $52.56, Westpac lost 26 cents at $23.99, National Australia Bank fell 20 cents at $25.13 and ANZ fell 14 cents at $23.05.
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