The Australian dollar is hardly changed against its US counterpart which again fell in the offshore session as traders braced for the resumption of deliberations on the US tax plan and the confirmation hearing for Federal Reserve governor Jerome Powell as the central bank’s next chair.
At 0635 AEDT on Tuesday, the Australian dollar was worth 76.09 US cents, up marginally from 76.07 US cents on Monday.
The dollar index, which measures the greenback against six rival currencies, fell 0.06 per cent to 92.724, after hitting a nine-week low of 92.496 earlier in the session .
Westpac’s Imre Speizer says while US initially were hitting fresh record highs before retreating, the US dollar slipped early on.
Commodity prices, most notably oil, also fell, he said.
‘The US dollar index initially fell to a two-month low but rebounded in New York to be slightly up on the day.
‘(The) AUD initially rose to 0.7645 before reversing to 0.7603, perhaps hurt by commodity price weakness overnight.’
It has since crept a little higher.
But, with no major local event risk on the horizon on Tuesday, Mr Speizer said he thought the local currency could slip further.
‘A negative reversal overnight leaves it in a lightly bearish state on the day, targeting 0.7595 if risk sentiment remains subdued.’
The Aussie dollar is down against the yen but up against the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON TUESDAY
One Australian dollar buys:
* 76.09 US cents, from 76.07 on Monday
* 84.48 Japanese yen, from 84.73 yen
* 63.93 euro cents, from 63.77 euro cents
(*Currency closes taken at 1700 AEDT previous local session)