Dollar loses ground

 

 

dollar,coin,moneyThe Australian dollar has slipped a little after a quiet night of trade with volumes down because of a US public holiday.

At 0700 AEST on Tuesday, the local unit was trading at 93.32 US cents, down from 93.49 cents on Monday.

Since 1700 AEST on Monday, the Australian dollar traded in a tight range between 93.19 US cents and 93.53 cents.

Economic data out overnight showed that manufacturing activity in the Euro zone slumped in August to a 13 month low, and manufacturing in the UK hit a 14 month low.

But National Australia Bank senior currency strategist Emma Lawson said there was little reaction to the data in currency markets.

“It was particularly quiet overnight, with the US on holidays,” she said.

“The poor European and UK data didn’t worry markets much, which, in the main, were taking a little nap.”

Lawson said markets will be focusing on the release of balance of payments figures, which are expected to show a fall in the value mining exports, which is expected to weigh on Wednesday’s June quarter gross domestic product data.

The board of the Reserve Bank of Australia also meets on Tuesday and is expected to keep the cash rate unchanged at 2.5 per cent.

AAP

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