The Australian dollar is lower as markets get increasingly nervous about the chances of the US government passing budget legislation before the fiscal year ends. 
At 0700 AEST on Monday, the local unit was trading at 93.12 US cents, down from 93.61 cents on Friday.
On Sunday, the US House of Representatives approved a Republican measure that would avoid a looming government shutdown but delays President Barack Obama’s health care law for one year.
The Senate will convene Monday afternoon, US time, ahead of the shutdown deadline at midnight, but Majority Leader Harry Reid has said his Democrats won’t approve the House’s latest proposal.
Bank of New Zealand currency strategist Mike Jones said traders are playing it safe until there is a budget resolution in the US.
“US fiscal shenanigans have started to weigh on market sentiment and we’ve seen high-risk assets come under pressure,” he said from Wellington.
“The Australian dollar will remain under pressure while the negotiations continue in Washington.”
Jones said US budget negotiations are likely to be the main focus for markets in the coming days.
“There is quite a high chance we will see a US government shutdown on Tuesday,” he said.
Jones expects the Australian dollar to trade in a range between 92.80 and 93.20 US cents on Monday.
AAP
