Australian dollar falls amid disappointing economic growth

The Australian dollar fell Wednesday after news of disappointing economic growth in the first three months of the year.

At 1200 (AEST), the currency was trading at 96.17 US cents, a drop from 96.93 cents on Tuesday.

Australia's economy grew by just 0.6 percent from January to March in 2013, according to the Australian Bureau of Statistics ( ABS), below economists' expectations.

Gross domestic product (GDP) growth for the 12 months to March was 2.5 percent, which was slower than the 3.1 percent rate in the December quarter, the ABS reported.

In the March quarter GDP grew by just 0.6 percent, below the 0. 8 percent growth rate predicted by economists, who had anticipated a 2.7 percent increase for the year.

AAP reports that weaker business investment and falling inventories caused the shortfall. Federal Treasurer Wayne Swan has pointed the finger at global pressures from the GFC, an economy transitioning into growth sectors outside of resources, and the high Australian dollar.

Growth for the March quarter was driven by a 1.0 percent contribution from exports and 0.3 percent contribution from household final consumption, the ABS said.

These increases were partially offset by a -0.9 percent contribution from public investment and a -0.4 percent contribution from changes in inventories.

The industries that drove growth in the March quarter were finance, mining, transport and retail.

The finance industry contributed 0.2 percent to GDP while the other industries each contributed 0.1 percent to the increase in GDP.