Aust dollar falls in early trade

Local currency pulls back from US92c on stronger US economic outlook.

The Australian dollar is lower after the United States monthly budget statement showed the government remained on track to post its lowest annual budget gap in five years.

At 0630 AEST, the local unit was trading at 91.46 US cents, down from 91.80 cents on Monday.

The US July budget statement indicated a strengthening of the US economy, with increased revenue and a narrowing deficit.

The improving economic outlook renewed expectations that the US Federal Reserve will soon begin tapering its economic stimulus, which added strength to the greenback and put pressure on the Australian dollar.

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