Australian dollar down amid US rate hike expectations

The Aussie dollar has slipped against the greenback as investors price in a US Fed interest rate rise this year.

The Australian dollar has slipped against its US counterpart as investors continue to price in a US Federal Reserve interest rate rise this year.

At 7am (AEST), the local unit was trading at US76.04 US cents, down from US76.44 cents on Friday.

Westpac strategist Imre Speizer said investors were still mulling over comments by New York Fed president William Dudley, who last week highlighted two months of jobs growth, and San Francisco Fed chief John Williams, who suggested the country’s inflation target should be increased.

Optimism that the US Federal Reserve will soon hike interest rates has strengthened the US dollar against currencies including the Aussie.

“This multi-day correction remains in progress, threatening to break below 0.7600,” Mr Speizer said of the Australian dollar, which has fallen by more than one US cent since August 10.

AAP