Aussie dollar slips back against greenback

(Australian Associated Press)

The Australian dollar has shed its early gains and is trading lower against the greenback.

The local unit had been above 75 US cents on Wednesday morning but by 1200 AEDT was trading at 74.88 – down from 74.94 on Tuesday.

The Aussie dollar continues to struggle to stay above 75 cents despite positive data from China on Tuesday, Stephen Innes, senior currency trader at forex provider OANDA Australia, said.

“The fly in the ointment is the weaker run of Aussie economic data,” he said.

Earlier, data from the Westpac-Melbourne Institute Index of Consumer Sentiment showed consumer confidence has fallen to its lowest level since April on concerns about the Australian economy.

Investors are also cautious ahead of the widely expected decision by the US Federal Reserve to raise rates this week.

CURRENCY SNAPSHOT AT 1200 AEDT ON WEDNESDAY

One Australian dollar buys:

* 74.88 US cents, from 74.94 cents on Tuesday

* 86.24 Japanese yen, from 86.23 yen

* 70.43 euro cents, from 70.47 euro cents

* 59.18 British pence, from 59.12 pence

* 104.02 New Zealand cents, from 104.15 NZ cents

BOND SNAPSHOT

* CGS 5.25 per cent March 2019, 1.842pct, down from 1.857pct on Tuesday.

* CGS 4.25pct April 2026, 2.736pct, down from 2.758pct.

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract was at 97.227 (implying a yield of 2.773pct), up from 97.195 (2.805pct) on Tuesday.

* September 2016 3-year bond futures contract was at 98.085 (1.915pct), up from 98.060 (1.940pct).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

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