Dollar slightly lower in late trade

The local unit has edged back, as the market awaits Wednesday’s inflation data.

Stacks of Australian one dollar coins. Focus on front coin.

The Australian dollar has fallen against its US counterpart as markets await the release of key inflation figures later this week.

At 5pm (AEDT) on Monday, the local unit was trading at US76.25 cents, down from US76.38c on Friday.

Westpac senior currency strategist Sean Callow said the Australian dollar had had a quiet Monday.

He said the Aussie dollar had taken a hit in trading on Wall Street after the US sharemarket opened lower on Friday but had stabilised as US equities found their feet.

The Aussie also took collateral damage as the Canadian dollar was beaten down in the wake of weaker-than-expected domestic economic data.

“But it stabilised around US76 cents this morning and has been pretty much hovering either side of that in very quiet ranges,” Mr Callow said. “We’re counting down to the CPI (figures) on Wednesday.”

The quarterly Australian inflation numbers on Wednesday will be an important pointer to the chances of another interest rate cut from the Reserve Bank of Australia before Christmas.

AAP