Dollar steady above US75c

The local unit has stabilised above overnight lows, despite the Reserve Bank’s rate hints.

The Australian dollar has stabilised following losses suffered when the Reserve Bank left the door open to an August rate cut.

At 1.30pm (AEST) on Wednesday the local unit was trading at US75.04 cents, unchanged from the same time on Tuesday.

The currency is trading off its overnight lows as profit taking sets in following the central bank’s dovish minutes, which were released on Tuesday, OANDA Australia and Asia Pacific senior trader Stephen Innes said. The RBA tipped inflation to remain weak for some time, while saying that the jobs and housing markets had been mixed lately.

But, Mr Innes said, Aussie bulls were not giving up so quickly, despite the shifting RBA rhetoric.

“We can see the momentum from the current risk rally, with US equities rising for the eighth consecutive session, is still providing a buffer for risk- sensitive currencies like the Aussie dollar,” he said.

AAP