Australian dollar slips further against greenback

The Aussie dollar has slipped further as the greenback hit a fresh seven-month high, continuing its recent trend.

The Australian dollar has slipped further after the US dollar hit a fresh seven-month high overnight, continuing its recent trend.

At 7.05am (AEDT), the local unit was trading at US75.65 cents, down from US75.78 cents yesterday.

The US dollar remained a bit higher after minutes from September’s meeting of Federal Reserve policymakers indicated they might raise interest rates if the US economy continues to improve.

Westpac senior market strategist Imre Speizer says the Australian dollar remains vulnerable to further downside, mainly because of the resurgence in the greenback.

“The Australian dollar is losing energy, perhaps a reflection of its declining yield advantage. By year-end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect,” he said in a note.

AAP