The Australian dollar is slightly lower as concerns about political tensions in Iraq and eastern Europe weighs on the market’s mood.
At 0700 AEST on Tuesday, the local unit was trading at 94.01 US cents, down from 94.07 cents on Monday.
Europe is at risk of gas supply disruptions after Russia rejected an 11th-hour compromise deal with Ukraine and cut its supplies.
The US is considering air strikes against militants in Iraq who are advancing closer to Baghdad.
Bank of New Zealand currency strategist, Raiko Shareef, said market nervousness meant the major currencies struggled to gain ground overnight.
“Another quiet day for G10 currencies, with none moving by more than 0.3 per cent against the US dollar,” he said.
“Much of that will, no doubt, be attributed to ongoing concern about the risk about higher oil prices as a result of Iraq’s unfolding internecine violence.”
On Tuesday, The Reserve Bank of Australia will release the minutes of its June board meeting, which should give some guidance on when the bank’s period of interest rate stability will come to an end.
AAP
