$A lower on US debt talks uncertainty

The Australian dollar has fallen a third of a US cent as attention moves away from the US Federal Reserve's latest stimulus and towards `fiscal cliff' talks.

At 1200 AEDT on Friday, the currency was trading at 105.14 US cents down from 105.52 cents on Thursday afternoon.

ForexCT head of research Steven Dooley said the Australian dollar was losing ground after after rallying on Thursday following the Fed's announcement of further stimulus measures.

"Everyone knew that we were going to get some more quantitative easing from the Fed," he said.

"Once we got that announcement there was no where really left to go."

He said Chinese manufacturing data, to be released later on Friday, was likely to drive the Australian dollar during the afternoon session.

But the market would now mainly focus on US political discussions about the so called `fiscal cliff' of tax hikes and spending cuts due to apply from 2013, he said.

"Now quantitative easing is behind us the only real thing for markets to focus on now is the fiscal cliff," he said.

"It's going to build to a crescendo at the end of the year."

Meanwhile, Australian bond futures prices were lower at noon.

At 1200 AEDT on Friday, the December 10-year bond futures contract was at 96.755 (implying a yield of 3.245 per cent), down from 96.770 (3.230 per cent) on Thursday afternoon.

The December three-year bond futures contract was trading at 97.250 (2.750 per cent), down from 97.260 (2.740 per cent).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9289+0.0002+0.02%
    AUDUSD=X
    0.55350.00+0.01%
    AUDGBP=X
    0.6724+0.0003+0.04%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg