Dollar lower amid increased tensions

THE Australian dollar is slightly lower following falls on equity markets and increased international tensions.

THE Australian dollar is slightly lower following falls on equity markets and increased international tensions.

At 12pm AEDT today, the local unit was trading at 103.92 US cents, down from 104.07 cents yesterday.

Since 7am AEDT today, it traded between 103.79 US cents and 104.08 cents.

Easy Forex currency dealer Tony Darvall said the dollar has lost a little ground in the morning session after US stocks fell around one per cent overnight.

"That was coupled with some increased tensions in the Middle East and a Pentagon report earlier this morning about Iran firing at an unarmed drone," he said. "That helped sell off risk assets like the Australian dollar."

US and European stocks fell after the European Central Bank kept its interest rate on hold and amid renewed concerns about the Greece financial crisis.

"The attention has now shifted away from the US elections and back to Europe and the problems we are having in that part of the world," Mr Solar said.

The market will also be focusing on the release of a raft of Chinese economic data this afternoon, that includes inflation figures and retail sales for October.

Meanwhile, Australian bond prices were higher at noon. At 12pm AEDT today, the December 10-year bond futures contract was trading at 96.975 (implying a yield of 3.025 per cent), up from 96.925 (3.075 per cent) yesterday.

The December three-year bond futures contract was at 97.440 (2.560 per cent), up from 97.390 (2.610 per cent).