Dollar drifts lower

 

money,stethoscope,coin,dollarThe Australian dollar has drifted lower following its rally on the back of the Reserve Bank decision to leave the cash rate at its record low.

At 0700 AEDT on Wednesday, the local currency was trading at 92.48 US cents, down from 92.66 cents on Tuesday.

The Australian dollar climbed above 93 US cents in the wake of the RBA decision on Tuesday to leave the cash rate at 2.5 per cent.

The currency was also boosted by Chinese manufacturing data, which came in stronger than expected.

The Australian dollar drifted lower overnight but was likely to rebound again on Wednesday, Arab Bank treasury dealer David Scutt said.

“While softer overnight, given Asia have been ravenous buyers of the Aussie since the RBA turned neutral back in February, as usual, it’s likely that the pair (Australian/US) will once again grind higher over the course of the Asian session,” he said.

In a statement accompanying the RBA decision, governor Glenn Stevens said the central bank expected “a period of stability in interest rates”.

AAP

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