Dollar declines

 

finance, money, dollarThe Australian dollar is lower, following falls in commodity prices and as the US dollar continues to gain strength.

At 0700 AEDT on Tuesday, the local unit was trading at 81.36 US cents, down from 81.68 cents on Monday.

Gold futures have hit one month lows and copper prices fell after new figures showed that sales of previously owned homes in the US tumbled in November, raising concerns about demand for the metal.

FxPro chief economist, Simon Smith, said the Australian dollar is still under pressure from a strengthening greenback.

“The US dollar stands near the highs for the year as we enter what will be a shortened trading week,” he said.

“Key events are getting thin on the ground going into the holiday period.”

Smith said the past three weeks have been turbulent for markets, with falling oil price and the volatility that it caused in other markets, including foreign exchange and stocks

“We have seen some recovery in oil back above the $US60 level on Brent, which is giving some relief from recent pressures,” he said.

AAP

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.