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Dollar pushes back

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The Australian dollar has clawed back most of the losses made over the Easter weekend in quiet trade ahead of the release of local inflation figures.

At 1200 AEST on Tuesday, the local unit was trading at 93.53 US cents, slightly down from 93.57 cents on Thursday.

Early on Monday morning the currency fell as low as 93.15 US cents, its weakest level since April 8, after Chinese Premier Li Keqiang said there would not be any programs to fight short-term dips in economic growth.

Westpac senior currency strategist Sean Callow said the Australian dollar has bounced from its two week low despite the fact that there are no economic data release or events to give traders guidance.

“The Australian dollar and other major currency pairs remained in familiar territory as European markets remained closed for Easter Monday and the US economic calendar offered little distraction, ahead of notable releases later in the week,” he said.

“There are several important releases even in this holiday shortened week but not so much today.”

The Australian Bureau of Statistics on Wednesday will release March quarter inflation figures, which are expected to show the annual rate of inflation rise above the Reserve Bank of Australia’s two to three per cent target range.

However, it is unlikely to spark an interest rate rise as inflation is forecast to ease later in the year.

On Thursday, the Reserve Bank of New Zealand will meet and is expected to raise its cash rate for a second month in a row, by a quarter of a percentage point to three per cent.

The Australian bond markets were weaker.

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