The Australian dollar is little changed against the US dollar which has been pressured by the decline in US bond yields as investors price out a March rate rise by the Federal Reserve.

At 0635 AEDT on Thursday, the Australian dollar was worth 76.38 US cents, up fractionally from 76.32 US cents on Wednesday.

Concerns about the impact on the world economy of US president Donald Trump’s protectionism and immigration policy have undermined bond yields and the greenback, along with the new administration’s hints that it would prefer a weaker US dollar.

Perception that a Fed interest rate rise is off the table over the first quarter of the year has also weighed on the US currency and pushed Treasury yields lower, said Western Union Business Solutions senior market analyst Joe Manimbo.

The local currency was down against the yen and flat against the euro.

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