Australia Markets closed

$A slightly lower after British downgrade

The Australian dollar is slightly lower against its US counterpart following a downgrade to Britain's credit rating.

At 0630 AEDT on Monday, the currency was trading at 103.05 US cents, down from 103.13 cents on Friday afternoon.

Ratings agency Moody's downgraded Britain's credit rating to AA1, stripping it of its prized AAA rating and warning growth is likely to remain sluggish for several years.

Meanwhile, markets are nervously awaiting an outcome from the Italian elections amid fears the poll results could spell trouble for the euro zone.

Italian polls will reopen on monday night (Australian time) for the second of two days of voting.