Australian dollar falls, weighed down by oil price, siege

THE Australian dollar has again threatened to fall below 82 US cents, under pressure from low oil prices and a siege in central Sydney.

Close-up of used Australian one dollar coin photographerd in Melbourne, Wednesday, June 13, 2012. Reserve Bank of Australia governor Glenn Stevens today said there are big benefits to Australian's as consumers from the high Aiustralian dollar (AUD). (AAP Image/Julian Smith) NO ARCHIVING

THE Australian dollar has again threatened to fall below 82 US cents, under pressure from low oil prices and a siege in central Sydney.

At 0700 AEDT on Tuesday, the local unit was trading at 82.22 US cents, down from 82.49 cents on Monday.

Oil prices rebounded slightly on Monday from fresh five-year lows amid stubborn worries over weak global crude demand, boosting stock markets.

Meanwhile, a 16-hour siege in a cafe in the centre of Sydney ended with three people dead, including the hostage taker.

Westpac senior market strategist Imre Speizer said these two factors pushed the Australian dollar to new four-and-a-half-year lows.

“Oil failed to hold on to overnight gains with Brent crude slipping back to Friday’s lows of $US56.50. Equities continue to move in tandem with oil initially opening higher before giving up the gains later in the day,” he said.

“The Australian dollar declined as the siege in Sydney continued and we saw a low of 82.02 US cents before a resolution of the situation.” Of interest to local markets on Tuesday will be the release of the minutes Reserve Bank’s December board meeting.

Currency snapshot at 0700 AEDT on Tuesday

One Australian dollar buys:

* 82.22 US cents, from 82.49 cents on Monday

* 96.78 Japanese yen, from 97.81 yen

* 66.11 euro cents, from 66.29 euro cents

* 106.20 New Zealand cents, from 106.37 NZ cents

* 52.56 British pence, from 52.48 pence

One euro buys:

* 124.37 US cents, from 124.43 cents

* 146.39 Japanese yen, from 147.55 yen

One US dollar buys:

* 117.71 Japanese yen, from 118.58 yen

(*Closes taken at 1700 AEDT previous local session)

Source: IRESS

Originally published as Australian dollar falls, weighed down by oil price, siege