Dollar under pressure
At 0700 AEDT on Thursday, the local currency was trading at 77.78 US cents, down from 78.40 cents on Wednesday.
The US dollar regained its strength overnight after sliding oil prices curbed a recent rally in risk appetite.
Iron ore prices also fell, putting further pressure on the Australian dollar.
National Australia Bank, senior economist, David de Garis said the Australian dollar had initially been trading higher overnight after China joined other central banks in easing monetary policy. China’s central bank said it would cut the level of funds that banks must hold in reserve by 0.50 percentage points.
“The announcement provided a temporary bounce in the Australian dollar/US dollar that was pulling back after earlier trading up to 78.40 US cents,” de Garis said. “The cross has eased back to the 77.40/70 cent region this morning.”
Official retail sales figures being released today will show how Australians spent their cash over the Christmas period.
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