Investing.com - The Australian dollar dropped to fresh eight-month lows against its U.S. counterpart on Monday, as demand for the greenback remained supported by data showing that the U.S. economy grew at its fastest pace in two-and-a-half years in in the second quarter.
AUD/USD hit 0.8684 during late Asian trade, the pair's lowest since January; the pair subsequently consolidated at 0.8711, retreating 0.59%.
The pair was likely to find support at 0.8685 and resistance at 0.8814, Friday's high.
The U.S. dollar strengthened broadly after the Commerce Department reported that U.S. gross domestic product was revised up to 4.6% in the three months to June from a previous estimate of 4.2%. It was the fastest rate of expansion since the fourth quarter of 2011.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.
The Aussie was also lower against the euro, with EUR/AUD gaining 0.61% to 1.4562.
Later in the day, the U.S. was to produce data on personal income and expenditure, as well as a private sector report on pending home sales.