Dollar slips in late trade
The Australian dollar is slightly lower in quiet trade as investors await the impact of upcoming economic figures and central bank meetings.
In late trade, the local unit was buying 104.43 US cents, down from 105.30 earlier today.
The dollar was buoyed overnight by comments from German Chancellor Angela Merkel, saying she supported the European Central Banks's debt crisis efforts.
OzForex senior foreign exchange manager Jim Vrondas said he doesn’t expect the Australian dollar to go much higher over the next few days.
‘‘It has been a relatively soft week for the Aussie (dollar),’’ he said.
‘‘It seems to have hit some resistance at the top end of the the channel we’ve been watching.
‘‘So it’s having a move down towards the bottom of that channel, getting some support around that 104.20 US cents area.’’
Mr Vrondas said the major driver for currency markets on Friday night, Australian time, will be the release of the the University of Michigan consumer sentiment data.
ForexCT head of research Steven Dooley said The Australian dollar is unlikely to move much until the northern hemisphere holiday period ends of August.
On August 31, there will be the central bankers’ summit at Jackson Hole, Wyoming.On September 6, European Central Bank meets and the policy arm of the US Federal Reserve meets on September 12 and 13.
‘‘Markets are waiting for those major meetings and will be looking keenly at any signs of economic stimulus,’’ Mr Dooley said. ‘‘In the meantime, traders have been keeping things ticking over by what we call trading the range.’’