The Australian dollar has fallen below 74 US cents amid a rebound in the US dollar as trade tensions continue and investors focus on hopes of Federal Reserve rate rises.
At 0635 AEST on Wednesday, the Australian dollar was worth 73.93 US cents, down from 74.04 US cents on Tuesday.
Westpac analysts say that while US equity markets were calmer overnight, oil prices rose, as did the US dollar.
‘US equity markets were calmer in the absence of trade war headlines, the S&P500 up 0.5 per cent,’ the analysts said in a morning note.
‘The US dollar is also firmer, and oil prices are higher, while US interest rates were fairly stable.’
‘The US dollar index is up 0.4 per cent on the day., (but the) AUD fell from 0.7420 to 0.7380.’
With no major local event risk for the Australian currency on Wednesday, the Westpac analysts anticipate the Aussie dollar will remain ‘rangebound’, between 73.45 and 74.45 US cents.
The Aussie dollar is, however, up against the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEST ON WEDNESDAY
One Australian dollar buys:
* 73.93 US cents, from 74.04 on Tuesday
* 81.35 Japanese yen, from 81.25 yen
* 63.45 euro cents, from 63.36 euro cents
(*Currency closes taken at 1700 AEST previous local session)