Dollar remains weak

 

dollar,money,hand,coinsThe Australian dollar is unchanged, as a fall in the price of iron ore and a weaker New Zealand dollar weigh on the currency.

At 0700 AEST on Tuesday, the local unit was trading at 87.19 cents, level with the local close on Monday.

It fell as low as 86.84 US cents on Monday, its lowest level since January 27.

The New Zealand dollar fell to a 13 month low against the US dollar after the Reserve Bank of New Zealand published figures showing it intervened in foreign exchange markets in August to drive the currency lower.

National Australia Bank senior economist, David de Garis, said both currencies bounced back from their lows overnight but the gains were limited.

“The Australian dollar and New Zealand dollar did not reach new lows overnight despite more weakness in iron ore and Chinese steel prices,” he said.

The currencies were also weighed down by falls in overseas stocks after pro-democracy demonstrators clashed with police in Hong Kong on the weekend.

“Hong Kong will no doubt be a major attention for now with the markets likely more sensitive to any downside surprises,” de Garis said.

On Tuesday, local markets will focus on the release of the weekly ANZ-Roy Morgan Consumer Sentiment index.

AAP

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