The Australian dollar is slightly weaker staying in a fairly tight range, as the US dollar’s post-jobs report rally loses steam.

At 0700 AEDT on Tuesday, the currency was trading at 70.48 US cents, down from 70.65 cents on Monday.

The US unemployment rate has fallen to a seven-year low of five per cent, which has heightened expectations that the Federal Reserve will raise the Federal Funds Rate for the first time in nine years.

Boris Schlossberg, director-FX strategy, BK Asset Management, said the US dollar was levelling off after its strong surge on Monday.

“Currencies have been generally quiet as the US dollar saw some profit taking,” he said.

“Many analysts now predict a December timeline for Federal Reserve’s first hike in more than eight years.”

Schlossberg said the debate would now turn to whether a December rise hike will be the first of a few or just a one-off.

“In the case of ‘one and done’ the market is much more likely to sell the US dollar on the news rather than buy it,” he said.

The key focus for local markets on Monday will be the release of official housing finance figures for September and the National Australia Bank’s monthly business survey.

AAP

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