$A higher in subdued trade

The Australian dollar is slightly higher after a quiet night on world markets, and ahead of a potentially influential statement by the Reserve Bank of Australia.

At 0700 AEDT on Tuesday, the currency was trading at 105.47 US cents, up from 105.35 cents on Monday afternoon.

"It's very quiet on markets at the moment, so the Australian dollar just tracked sideways last night," Bank of New Zealand currency strategist Mike Jones said.

"I think financial markets are keeping one eye on Christmas as well, as volumes are thinning out a little.

"There's also the issue of the fiscal cliff, which looks like it might not be resolved until after Christmas."

The fiscal cliff refers to a series of tax hikes and spending cuts which are scheduled to begin in January, and US leaders are aiming to settle on budgetary changes before the end of the year.

The minutes from the RBA's December meeting, to be released on Tuesday, could give the currency some direction if they include an indication of future rate movements, Mr Jones said.

"There's still a reasonable expectation that there will be future rate cuts ahead," he said.

"So if they cast some doubt on the need to cut aggressively in the future, that could provide some support for the Aussie dollar.

"We could see it press up towards that 106 (US cent) level."

The RBA cut the cash rate by 0.25 per cent to 3.00 per cent at its meeting on December 4, citing concerns about global growth.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9327-0.0005-0.05%
    AUDUSD=X
    0.5555-0.0003-0.05%
    AUDGBP=X
    0.6753-0.0003-0.05%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg