THE dollar closed higher on today ahead of expected weak economic data from the United States.
At5pm AEST today, thedollar was trading at US90.12c, up from yesterday's local close of US89.91c.
Since7am AEST, the domestic dollar traded between US89.75c and US90.22c.
US gross domestic product (GDP) data out tonight 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 dollar.
Mr Lee said the Chinese manufacturing data, due out Sunday, was expected to fall to its lowest in 17 months.
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"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.
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