The Australian dollar is lower due to weaker than expected crude oil prices.
At 1200 AEDT on Wednesday, the currency was trading at 71.09 US cents, down from 71.48 cents on Tuesday.
An underwhelming meeting of some of the world’s top oil producers overnight had given crude prices a smaller than expected bounce, CMC Markets chief market analyst Ric Spooner said.
“I think that’s the key for the Aussie today, along with weaker commodity prices in general,” he said.
The Australian dollar is likely to end the local trading session lower, Mr Spooner said.
“At this stage, certainly into the US session, that appears to be the direction of momentum at the moment,” he added.
National Australia Bank economist Tapas Strickland said the Australian dollar was vulnerable to downside risk if employment figures due out on Thursday prove softer than expected.
“No doubt a strong report will elicit a knee-jerk reaction, but given the current risk on environment, any positive reaction is more likely to be limited unless the unemployment rate falls and looks credible,” he said.
One Australian dollar buys:
* 71.09 US cents, from 71.48 cents on Tuesday
* 81.25 Japanese yen, from 81.90 yen
* 63.86 euro cents, from 64.08 euro cents
* 108.14 New Zealand cents, from 108.38 NZ cents
* 49.73 British pence, from 49.56 pence
Government bond yields:
* CGS 5.25pct March 2019, 1.849pct, from 1.858pct on Tuesday
* CGS 4.25pct April 2026, 2.532pct, from 2.525pct
Sydney Futures Exchange prices:
* March 2016 10-year bond futures contract, was at 97.465 (implying a yield 2.535 per cent), down from 97.475 (2.525 per cent) on Tuesday
* March 2016 3-year bond futures contract, at 98.150 (1.850 per cent), unchanged from Tuesday.
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)