The Australian dollar hit a three week low in late trading on Tuesday, before recovering slightly, as the US greenback improved on diminishing political uncertainty after the second US presidential debate.
At 1700 AEDT on Tuesday, the local unit was trading at 75.57 US cents, down from 75.96 cents on Monday.
It hit a low of 75.44 cents against the US currency in late trading on Tuesday, its lowest level since September 21.
"This is mainly because the US currency has been stronger generally today," CMC Markets chief analyst Ric Spooner said.
"There also looked to be a slight easing in local home loan data, so that may also have had an impact."
He said the Australian dollar could likely continue its downward momentum in the next few sessions.
The US dollar has strengthened after the second presidential debate on Monday, Australian time, as the likelihood of a Trump presidency receded and investors priced in the likelihood of a win by Democrat candidate Hillary Clinton.
CURRENCY SNAPSHOT AT 1700 AEDT ON TUESDAY
One Australian dollar buys:
- 75.57 US cents, from 75.96 cents on Monday
- 78.59 Japanese yen, from 78.19 yen
- 67.92 euro cents, from 67.93 euro cents
- 61.37 British pence, from 61.25 British pence
- 106.90 New Zealand cents, from 106.23 NZ cents
- The spot price of gold in Sydney at 1700 AEST was $US1,258.18 per fine ounce, down $US12.95 on $US1,259.52 on Monday.
- CGS 5.25pct March 2019, 1.7005pct, from 1.667pct on Monday
- CGS 4.25pct April 2026, 2.1956pct, from 2.138pct
Sydney Futures Exchange prices:
- December 2016 10-year bond futures contract at 97.780 (implying a yield of 2.220 per cent), down from 97.845 (2.155 per cent) on Monday.
- December 2016 3-year bond futures contract at 98.340 (1.660 per cent), down from 98.370 (1.630 per cent).
(* Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)