Dollar slips ahead of rba rate decision

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THE Australian dollar is fractionally lower against the greenback following mixed US economic data and as investors await the Reserve Bank of Australia’s rate decision.

At 0700 AEDT on Tuesday, the local unit was trading at 76.07 US cents, down slightly from 76.13 cents on Monday.

Westpac senior market strategist Imre Speizer said interest rate and foreign exchange markets were contained overnight amid a mixed batch of US economic data, including personal income, inflation, plus Chicago and Dallas purchasing managers index (PMI).

Oil fell three per cent to a one-month low overnight following the inconclusive OPEC supply talks over the weekend, Mr Speizer said.

Markets will be watching the RBA today for any shift to an easing bias, he said.

The RBA announces its rate decision at 1430 AEDT on Tuesday.


One Australian dollar buys:

* 76.07 US cents, from 76.13 cents on Monday

* 79.783 Japanese yen, from 79.75 yen

* 69.29 euro cents, from 69.41 euro cents

* 62.16 British pence, from 62.44 British pence

* 106.37 New Zealand cents, from 106.45 NZ cents

(*Currency closes taken at 1700 AEDT previous local session)