Aust dollar lifts slightly

Investors are largely waiting on the sidelines ahead of the RBA’s meeting.

The Australian dollar is slightly higher as traders largely wait on the sidelines ahead of the Reserve Bank’s interest rate decision.

At 6pm AEST on Friday, the local unit was trading at 76.35 US cents, up from 76.27 cents on Thursday.

National Australia Bank global co-head of FX strategy Ray Attrill said trading volumes were weak on Friday as people wait for Tuesday’s Reserve Bank interest rate decision.

He said traders were rating about a 50 per cent chance of a rate cut.

“There is uncertainty over the RBA’s decision so traders are sitting on their hands awaiting Tuesday’s outcome,” Mr Attrill said.

“Global stock markets were weaker overnight which is normally a negative for the Aussie dollar but this was not the case, perhaps because the Japanese stock market was closed today.” Westpac senior market strategist Imre Speizer said investors bought up Japan’s yen and the New Zealand dollar overnight after their central banks decided to keep their rates on hold.

AAP