Dollar down on weak business report

THE Australian dollar is lower on weak domestic business sentiment.

THE Australian dollar is lower on weak domestic business sentiment.

At 12pm AEDT today, the local unit was trading at 104.12 US cents, down from 104.17 cents yesterday.

Since 7am AEDT, it has traded between 104.12 US cents, and 104.30 cents.

National Australia Bank (NAB) currency strategist Emma Lawson said a weak monthly reading for business conditions and confidence had pushed the Aussie dollar down.

"We released our business survey this morning, and it was very weak, so the Aussie is lower on that," she said. "The survey showed that business conditions are at their lowest point in three years, but because it's a generally quiet currency market, with low volumes, so it's produced quite a move."

NAB's business survey showed business conditions falling to minus five in October, from minus three in September, while business confidence backtracked to minus one, from zero in September.

Ms Lawson said developments in the euro zone were the main focus for markets at the moment.

"It looks like euro area leaders are marching on to an agreement on Greece," she said. "However, they're going to delay any decision on the troika until a finance ministers' meeting on the 20th (of November)."

Greece is hoping for a decision this month on whether it will receive its next tranche of debt bailout funds - to the tune of 3.15 billion euros ($3.87 billion).

Meanwhile, Australian bond prices were lower at noon. At 12pm AEDT today, the December 10-year bond futures contract was trading at 96.995 (implying a yield of 3.005 per cent), down from 97.005 (2.995 per cent).

The December three-year bond futures contract was at 97.440 (2.560 per cent), down from 97.460 (2.540 per cent).