The Australian dollar has drifted lower following a mixed performance on global equity markets on Friday night.
At 0700 AEST on Monday, the currency was trading at 104.47 US cents, down from 104.64 US cents on Friday afternoon.
Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar moved little over the weekend, in the wake of a mixed performance on global equity markets.
“You had an up in Europe and a down in New York, so they kind of cancelled each other out.
“There is really not a lot going on and it (the Australian dollar) is roughly where it closed on Friday night,” he said.
With very little Australian economic data to be released this week, Speizer said, the currency would take its lead from events in Europe and the US.
He said the currency could trade in a narrow range for most of the week.
The Australian dollar rebounded almost one US cent on Friday after weaker than expected Chinese economic data prompted it to fall sharply during Thursday’s local session.
The Australian dollar is half a US cent lower, following sharp falls in commodity prices.
At 0700 AEST on Tuesday, the local unit was trading at 104.76 US cents, down from 105.24 cents on Monday.
“The Aussie has suffered a one two punch in the past 24 hours,” Bank of New Zealand currency strategist Mike Jones said from Wellingon.
“Not only is speculation of an October rate cut continuing to gather pace but commodity prices have had a particularly nasty session overnight and both those factors have dragged the Aussie dollar lower.”
On Tuesday morning, the Reserve Bank of Australia (RBA) is due to release minutes of its September 4 board meeting.
Jones said a lot had happened since the RBA board meeting two weeks ago and he didn’t expect the document to carry any hints about an October rate cut.
“More downbeat global news has come in after the September RBA board meeting.
I don’t think we’ll get a smoking gun this time around,” he said.
“We will continue to see the Aussie dollar drift lower as we head into the minutes.”
Jones said he expected the Australian dollar to trade in a range between 104.30 US cents and 105.00 cents on Tuesday.
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