Dollar down in lead up to EU summit

THE Australian dollar is trading one US cent lower as European and world leaders prepare for their weekend summit that markets hope will produce a comprehensive solution to the deepening euro debt crisis.

THE Australian dollar is trading one US cent lower as European and world leaders prepare for their weekend summit that markets hope will produce a comprehensive solution to the deepening euro debt crisis.

The leaders of Germany, France, the International Monetary Fund (IMF) and European Central Bank (ECB) will meet today for a last-minute, "informal working meeting", in Frankfurt, according to a French official.

It comes amid mounting pressure on European leaders to shore up their banks, slash debts and halt market volatility with a dramatic plan at the European Union (EU) summit on Sunday.

At 6.30am (AEDT) today, the Australian dollar was trading at 102.13 US cents, down from 103.13 cents yesterday.

At 9.30am (AEDT), Reserve Bank of Australia (RBA) assistant governor Malcolm Edey is due to deliver a speech to the International Swaps and Derivatives Association Annual Australia Conference in Sydney.

Later in the morning, National Australia Bank publishes its business survey for the September quarter.