Australian dollar drops below 93 US cents

The Australian dollar has taken a hit from renewed interest in the US dollar. At 1700 AEST on Tuesday, the local currency was trading at 92.89 US cents, down from 93.49 cents on Monday. 'Following the US Labor Day trading lull, the greenback bulls have returned in force,' FXCM market analyst David de Ferranti said. 'Broad-based US dollar strength has permeated the Asian session today, which is surprising given the lack of major supportive news flow from the US.' Mr de Ferranti said the 'status-quo' rate decision by the Reserve Bank, which left the cash rate at 2.5 per cent for the 13th straight month, had little impact on the Australian dollar. 'The resilience of leading indicators like business and consumer confidence is offering positive signals for the health of the local economy,' Mr. de Ferranti said, according to skynews.com.