Australian dollar virtually level ahead of federal budget

THE Australian dollar is virtually unchanged from its local close on Friday as the market waits for the release of the federal budget.

On Monday morning, the dollar was trading at 93.62 US cents.

THE Australian dollar is trading in a tight range after gaining almost one per cent last week.

At 0700 AEST on Monday, the local unit was trading at 93.62 US cents, up from 93.56 cents on Friday.

The currency peaked at 93.96 US cents late on Thursday night, its highest level since early November.

RBC senior currency strategist Greg Moore said the Australian dollar had fallen from those levels as some traders sold the currency to lock in profits.

“The Australian dollar ended last week pulling back modestly from its sharp climb,” he said.

“The Australian 2014/15 budget on Tuesday is the domestic highlight this week where Treasurer Joe Hockey’s first budget will confirm a moderate tightening of fiscal policy over the medium term.

“We estimate a nearly 0.5 per cent annual drag on growth, and a return to surplus within the decade.” The highlight of local economic data out on Monday is the National Australia Bank monthly business survey.

At 0630 AEST on Monday, the local unit was trading at 93.60 US cents, slightly up from 93.56 cents on Friday.

Originally published as Australian dollar virtually level ahead of federal budget