Aussie dollar surges on weak U.S. GDP data

Weaker than expected U.S. economic data has supported the Aussie dollar in offshore trade following falls in the greenback.

At the Asian on Monday, the Australian dollar was trading at 75.96 U.S. cents, up from 75.08 U.S. cents at Friday's close.

The greenback was weighed in the offshore session after U.S. Gross Domestic Product (GDP) data printed well below expectations, causing an unwind expectations the U.S. Federal Reserve will hike rates.

But it's far from done and dusted for the U.S. dollar and the Federal Reserve this week, National Australia Bank director and senior economist David de Garis said.

"It's a very big week for U.S. data with the ISM reports, tonight for manufacturing and the non-manufacturing report on Wednesday, with payrolls on Friday all important growth signposts into the September quarter," the official said.

The Reserve Bank of Australia's August policy meeting will generate the most volatility in the Australian dollar no matter if monetary policy is eased or not, Commonwealth Bank of Australia chief currency strategist Richard Grace said.

The unit is also expected to be influenced by a swath of local data, China's manufacturing Purchasing Managers Index (PMI), and broader movements in commodity markets to finishing the week lower, Grace said.

At 09:29 local time (AEST), the Australian dollar was holding steady at 75.94 U.S. cents. Endit