Dollar slips on renewed us rate rise hopes

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THE Australian dollar has slipped amid renewed hopes of a US rate rise before Christmas. At 0800 AEDT on Tuesday, the local unit was trading at 76.11 US cents, down from 76.25 cents on Monday.

BK Asset Management managing director of foreign exchange strategy Kathy Lien said the greenback was boosted against all major currencies by positive manufacturing data for October and renewed hopes of a US interest rate rise in December.

She also said a number of US Federal Reserve policymakers, speaking overnight, were optimistic about interest rates.

All three of the commodity currencies traded lower against the US dollar today. The biggest loser was the Canadian dollar which dropped to a fresh seven-month low against the greenback, Ms Lien said in a note.

No data was released from Australia or New Zealand over the last 24 hours so the weakness of these currencies were due entirely to the strength of the US dollar. The only local risk event of note is the ANZ weekly consumer confidence survey due on Tuesday morning.

CURRENCY SNAPSHOT AT 0800 AEDT ON TUESDAY

One Australian dollar buys:

* 76.11 US cents, from 76.25 cents on Monday

* 79.28 Japanese yen, from 79.20 yen

* 69.95 euro cents, from 70.10 euro cents

* 62.22 British pence, from 62.47 British pence

* 106.70 New Zealand cents, from 106.38 NZ cents

(*Currency closes taken at 1700 AEDT previous local session)