The Australian dollar has closed lower, but stayed above 99 US cents ahead of key inflation data due on Wednesday.
At the local close of trade, the dollar was at 99.19 US cents, down from Monday’s close of 99.48 US cents.
Senior currency analyst at financial markets research group 4Cast, Lee Wai Tuck, said the Australian dollar ended the Asian session near its intra-day high.
‘‘It has been a pretty rangebound today,’’ Mr Lee said from Singapore. ‘‘There is a lot of speculation that the Fed will do more quantitative easing next week.’’
Mr Lee said the currency received support in the second half of the local session as investors turned their gaze to the consumer price index (CPI) report due on Wednesday.
The CPI, the key measure of inflation, is expected to have risen by 0.8 per cent in the September quarter for an annual rate of 2.9 per cent, according to an AAP survey of 15 economists.
Financial markets have focused on the CPI report as a potential game-shifter for the Reserve Bank of Australia’s (RBA) board meeting on Tuesday, November 2.
A strong inflation reading could add pressure for the RBA to lift the overnight cash rate by 25 basis points to 4.75 per cent.
‘‘Also, if the CPI was to come in slightly higher, then the RBA is expected to lift interest rates to 4.75 per cent,’’ he said.
Economic data due in the US during Tuesday’s offshore session includes the US Conference Board’s consumer confidence index and the Richmond Federal Manufacturing index, both for October.
AAP