Australian dollar weaker as US strengthens

THE Australian dollar has fallen as the greenback edges higher ahead of Federal Reserve chief Janet Yellen’s Congressional testimony.

The Australian dollar has fallen as the greenback edges higher.

THE Australian dollar has fallen as the greenback edges higher ahead of Federal Reserve chief Janet Yellen’s Congressional testimony.

At 0630 AEDT on Thursday, the local unit was trading at 89.51 US cents, down from 90.12 cents on Wednesday

The Aussie dollar is under a lot of pressure as the greenback appreciates and the Chinese Yuan continues to fall amid increased concerns about a slowdown in Australia’s biggest export market, BK Asset Management managing director Kathy Lien said.

Ms Lien said the local currency may fall to two-week lows if the Australian business investment figures, due out on Thursday, are weaker than expected.

“The US dollar has appreciated across the board against all the major currencies and the persistent decline in Chinese Yuan are all putting downward pressure on the Aussie,” she said.

“It could potentially break its two-week low and drop below 89 cents if capital expenditure is really weak or if Janet Yellen’s testimony is in any way detrimental (to the Aussie).” Ms Yellen will address the US Senate tonight, Australian time. The Australian Bureau of Statistics will release the December quarter capital expenditure figures at 1130 AEDT. They are expected to show that investment in the mining and resources sector has peaked.

The Australian Bureau of Statistics on Thursday will release the December quarter capital expenditure figures, which are expected to show that investment in the mining and resources sector has peaked.

###