Aust dollar lifts in early trade

Local currency rises as weak data casts doubts over US economic recovery.

The Australian dollar has gained some ground against the United States currency after a weak batch of data cast doubt over the economic recovery in the US.

At 0630 AEST, the local unit was trading at 91.88 US cents, up from 91.57 cents on Friday.

The US dollar was weaker after a string of disappointing economic reports on Saturday, Australian time, cast doubt over the outlook for economic recovery in the US, raising the question of whether or not the US Federal Reserve should taper asset purchases this year.

The University of Michigan consumer sentiment index showed consumer confidence in the US fell from a six-year high in August.

Housing starts and building permit figures for July were weaker than expected while productivity figures were also disappointing.

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