Ukraine, Chinese economy weigh on Australian dollar

THE Australian dollar has lost ground as tensions about the Ukraine crisis and concerns about the Chinese economy weigh on market sentiment.

THE Australian dollar has lost ground as tensions about the Ukraine crisis and concerns a

THE Australian dollar has lost ground as tensions about the Ukraine crisis and concerns about the Chinese economy weigh on market sentiment.

At 0700 AEDT on Tuesday, the local unit was trading at 90.18 US cents, down from 90.28 cents on Monday.

President Vladimir Putin's threat to invade Ukraine and take over the Crimea region after a pro-Russian government lost power last month has seen relations between Russia and Western nations continue to deteriorate.

Over the weekend, Chinese import and export figures showed an unexpected trade deficit for February after exports fell 18.1 per cent.

Westpac New Zealand senior market strategist Imre Speizer said there seemed to be nothing for traders to be happy about at the moment.

“Markets adopted a slightly pessimistic posture following the weekend's weak China data and continuing tensions in Ukraine,” he said.

“Otherwise, there was no fresh news of significance, limiting volatility overnight.” Mr Speizer said he doesn't expect the Australian dollar to fall too much further in the coming weeks, thanks to the Reserve Bank of Australia's stable outlook for the cash rate.

“However, there remains a question mark around Australia's economy, with tension between strong business sentiment and weak consumer sentiment not expected to be resolved until the second half of this year,” he said.

Local economic data of interest to markets on Tuesday include the National Australia Bank's monthly business survey for February.

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