Dollar down on lack of data

THE Australian dollar has failed to rise above 104 US cents given a lack of data to push it up.

THE Australian dollar has failed to rise above 104 US cents given a lack of data to push it up.

At 1700 AEST today, the local unit was trading at 103.64 US cents, down from 103.79 cents on Thursday.

Since 0700 AEST the Australian dollar traded between 103.59 US cents and 103.90 cents.

Nomura head of foreign exchange Kurt Magnus said the Australian dollar had been unable to maintain its momentum from Thursday, when it had risen above one US cent on American currency weakness.

"The Australian dollar is trapped in a very tight trading range ahead of the Japanese golden week holidays," he said.

"It has failed to break the psychological barrier of 104 (US cents) only because of a lack of information in the market.

"We're just requiring something else just to nudge us a bit higher, and a weak US dollar could be the catalyst."

Mr Magnus said the next domestic event to impact the market would be the Reserve Bank of Australia's meeting on May 1, when it is expected to cut rates by at least 25 basis points.

"A 25 basis-point cut will keep the Aussie where it is - it will not sell off because it's all factored in now," he said.