Australian dollar is slightly lower

THE Australian dollar is slightly lower, while putting in an improved performance after last week’s losses on the back of China’s currency devaluations.

The Australian dollar is slightly lower.

THE Australian dollar is slightly lower, while putting in an improved performance after last week’s losses on the back of China’s currency devaluations.

At 0700 AEST on Tuesday, the local unit was trading at 73.71 US cents, down from 73.77 cents on Monday.

RBC senior currency strategist Greg Moore said the Australian dollar was among one of many currencies that were performing better this week.

“Last week, commodity currencies were the G10 losers after the People’s Bank of China’s policy change that drove a sharp devaluation of Chinese yuan,” he said.

“The US dollar has remained steady against the yuan at the start of this week, and that has helped calm fears of considerable knock-on effects from the policy adjustment. Commodity currencies have bounced as a result.” In local trade on Tuesday, the market will be closely watching the release of the minutes of the Reserve Bank’s August board meeting.

The RBA has kept the cash rate unchanged at a record low of two per cent for the past three months and traders will be keen to see if the bank is done with its interest rate cuts.

CURRENCY SNAPSHOT AT 0700 AEST ON TUESDAY

One Australian dollar buys:

* 73.71 US cents, from 73.77 cents on Monday

* 91.69 Japanese yen, from 91.77 yen

* 66.54 euro cents, from 66.47 euro cents

* 112.15 New Zealand cents, from 112.58 NZ cents

* 47.30 British pence, from 47.08 pence (*Currency closes taken at 1700 AEST previous local session)

Source: IRESS