Australian dollar lower as oil prices take a hit

THE Australian dollar has slipped back below 83 US cents as oil prices come under further pressure after OPEC cut its 2015 demand forecast.

An Australian one-dollar coin is arranged for a photograph in Sydney, Australia, on Wednesday, April 17, 2013. Direct trading between the Australian dollar and yuan started on April 10. Photographer: Ian Waldie/Bloomberg

THE Australian dollar has slipped back below 83 US cents as oil prices come under further pressure after OPEC cut its 2015 demand forecast.

At 0700 AEDT on Thursday, the local currency was trading at 82.90 US cents, down from 83.20 cents on Wednesday.

“Oil was the big story of the night, down again large,” National Australia Bank senior economist David de Garis said.

“Brent crude was down... to $US63.40 as OPEC cut its demand forecast to a 12-year low.” Rising weekly crude inventories figures from the US also weighed on sentiment, Mr de Garis said, along with comments from the Saudi oil minister who was quoted as saying `why should I cut production?’ Locally, all eyes on Thursday will be on the release of jobs figures for November, although recent volatility in the figures have made them less reliable.

“Today’s employment data, as best as the numbers can be believed, will help dictate direction,” Mr de Garis said.

Originally published as Australian dollar lower as oil prices take a hit