The Australian dollar has edged lower, failing to find a catalyst that would help it recover recent losses.
At 12pm AEST the local unit was trading at 96.23 US cents, down from 96.39 cents at yesterday’s local close. During the morning the currency dropped as low as 95.97 US cents, only the second time it has passed 96 cents in 12 months.
ForexCT head of research Steven Dooley said last week's comments from Federal Reserve chairman Ben Bernanke about the likelihood of an end to a US stimulus program, weak Chinese manufacturing figures and falling commodity prices were still pushing the Australian dollar lower.
But there was a lot of buying pressure when the Australian dollar starts to head closer to 95.80 US cents, he said.
“I don't think we're going to see much from the Aussie dollar for the next 48 hours, it'll drift higher, but when Thursday comes that will be the crucial point for the Aussie this week.''
Official Australian business investment figures for the March quarter will be released on Thursday.
“We had a really disappointing figure the previous quarter,'' Mr Dooley said. “Economists are looking for a bounce and if we don't get that bounce, it's all over red rover for the Aussie dollar. It will go down below 95.80 US cents and back towards 94.00 cents.”
