Aust dollar extends fall in early trade

Local currency continues to retreat below US90c on US data.

The Australian dollar extended its downward trend to fall in early trade, on claims for United States unemployment insurance benefits last week fell to a five-year low.

At 0630 AEST on Friday, the local unit was trading at 89.29 US cents, down from 89.58 cents on Thursday.

The dollar begin its most recent tumble in the wake of a Reserve Bank of Australia (RBA) policy meeting, and extended its decline after the US Federal Reserve's policy statement boosted the US dollar. 

The overnight decline came despite stronger than expected Chinese manufacturing data that dampened fears about China's economic slowdown.