Aust dollar falls in early trade

Local currency slips as solid US economic data raises taper expectations.

The Australian dollar is lower as a batch of good US economic data raised expectations the US Federal Reserve will scale back its asset purchases in the coming months.

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

US economic growth in 12 months to June was 2.5%, faster than the original estimate of 1.7%, the Commerce Department said.

Most major currencies fell against the US dollar as investors believed the data might mean a winding down of the Fed's economic stimulus program.

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