Dollar declines

dollar4The Australian dollar is lower against its US counterpart which itself has slipped, along with equities, amid concern over President Donald Trump’s planned tax reform.

At 0635 AEDT on Monday, the Australian dollar was worth 76.61 US cents, down from 76.87 US cents on Friday.

Westpac’s Imre Speizer said US bond yields rose, and equities and the US dollar weakened slightly amid continuing uncertainty about the content and timing of US tax reforms.

“The US dollar index closed down 0.1 per cent on the day, (while the) AUD slipped from 0.7695 to 0.7654,” he said in a Monday morning note. “US consumer sentiment (Michigan Univ.) fell from 100.7 to 97.8 (vs 100.8 expected). Inflation expectations for one year ahead rose from 2.4 per cent to 2.6 per cent, while five-year to 10-year expectations were unchanged at 2.5 per cent,” he added.

The main local event risk for the Australian dollar would be Reserve Bank of Australia deputy governor Debelle speech on Business Investment in Australia, in Sydney on Monday morning. He expected the local currency to remain “stuck in a two-week old range between 0.7625 and 0.7730″. The Aussie dollar is also lower against the yen and the euro.

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