PERTH: The Australian dollar is sliding lower in lacklustre trade against a strengthening US dollar.
The Australian dollar was worth US78.23c at noon (AEST), down from US78.31c yesterday.
LTG GoldRock director Andrew Barnett said the greenback continued to rally because of speculation the US Federal Reserve would raise its interest rate sooner rather than later.
“In the last seven or eight trading days we’ve really seen strength in the US dollar not so much weakness in the Aussie,” he said.
“The US dollar had its first positive week for six weeks last week.”
Trading volumes have been thin in the past 12 hours with US markets shut for the Memorial Day public holiday, and most European markets closed for other public holidays.
Mr Barnett said currency markets were waiting for the release of US consumer sentiment and durable goods data due out tonight, Australian time.
After that all eyes in the local market will be on March quarter capital expenditure figures, due out on Thursday.
Business investment in Australia has been getting weaker and Mr Barnett said the figures could send the Australian dollar even lower.
