Australia Markets closed

$A lower on Fed hike hopes

The Australian dollar is lower, losing ground after a US Federal Reserve official confirmed that a rate rise is still on the cards.

At 0630 AEST on Tuesday, the local unit was trading at 71.35 US cents, down from 71.76 cents on Monday.

The Fed last week held off on raising its interest rate but Federal Reserve Bank of Atlanta president Dennis Lockhart overnight confirmed the decision was close and expects a hike before the end of the year.

CURRENCY SNAPSHOT AT 0630 AEST ON TUESDAY

One Australian dollar buys:

* 71.35 US cents, from 71.76 cents on Monday

* 85.96 Japanese yen, from 86.06 yen

* 63.74 euro cents, from 63.48 euro cents

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

Source: IRESS