$A virtually unchanged in quiet trade

The Australian dollar is flat after US markets were closed overnight for the President's Day public holiday.

At 0700 AEDT on Tuesday, the local unit was trading at 102.97 US cents, a touch higher from 102.95 cents on Monday.

Since 1700 AEDT on Monday, the Australian dollar has traded between 102.75 US cents and 103.16 cents.

BK Asset Management managing director Boris Schlossberg said the Australian dollar has been creeping lower in recent weeks as the prospect of another interest rate cut by the Reserve Bank of Australia (RBA) looms.

"The slowdown in Australian economic growth has forced the RBA to lower rates to the three per cent level and many market participants expect, perhaps, another 50 basis points of easing," Mr Schlossberg said from New York.

"For now, the Aussie has held above the 102.50 US-cent support level, but continues to make progressively lower highs as selling pressure remains on the unit."

Mr Schlossberg said the Australian dollar falling towards 100.00 US cents, or parity, is not out of the question.

"A break below 102.50 US cents could open the path towards 101.50 cents and possibly parity, especially if the RBA cuts rates further," he said.

Investors are hoping for a clearer picture of the RBA's intentions when it releases the minutes of its February 5 board meeting on Tuesday.

The central bank kept the cash rate at three per cent in February after cutting by a quarter of a percentage point at its previous meeting in December.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9273-0.0092-0.98%
    AUDUSD=X
    0.5524-0.0042-0.76%
    AUDGBP=X
    0.6702-0.0082-1.21%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg