The Australian dollar has continued its slide against the US dollar, performing poorly versus an unchanged US currency.
At 0635 AEST on Tuesday, the Australian dollar was worth 74.23 US cents, down from 74.44 US cents on Monday.
Westpac analysts say the local currency had been a distinct underperformer overnight, hitting a more than a month low, with no obvious reason.
‘The US dollar index is unchanged on the day. EUR bounced off 1.1565 to 1.1624. USD/JPY ranged between 10.40 and 110.60. Underperformer AUD fell from 0.7454 to 0.7414 – the lowest since 9 May,’ they said in a Tuesday morning note.
‘There was no data of note to report, but there was Fedspeak from Bostic, who said he expected one more hike in 2018, and Williams, who advocated transparency in his first speech since taking the role of NY Fed (New York Federal Reserve) president.’
The only real event risk for the Australian dollar on Tuesday would be the Reserve Bank of Australia minutes of its June policy meeting.
‘(The) RBA minutes will provide additional colour around the board deliberations on the unchanged (interest rate) policy stance.’
Regards the local currency’s movements on Tuesday, the analysts said: ‘The key support level of 0.7410 (the May low) continues to look vulnerable’.
The Aussie dollar has also slumped against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEST ON TUESDAY
One Australian dollar buys:
* 74.23 US cents, from 74.44 on Monday
* 82.06 Japanese yen, from 82.29 yen
* 63.86 euro cents, from 64.30 euro cents
(*Currency closes taken at 1700 AEST previous local session)