Aust dollar slips in early trade

The Australian dollar is slightly lower as the United States dollar continues to strengthen following last week's news that the US central bank may wind up its economic stimulus program.

The Australian dollar is slightly lower as the United States dollar continues to strengthen following last week's news that the US central bank may wind up its economic stimulus program.

At 0730 AEST, the local unit was trading at 92.20 US cents, down from 92.34 cents on Friday.

The local currency fell 3.5% against the US dollar last week – the biggest weekly fall since September 2011 – after US Fed chairman Ben Bernanke signalled the Federal Reserve may soon start to wind up its stimulus program if the US economy continued to improve.

The announcement, along with weaker-than-expected manufacturing data from China, saw the Australian dollar fall against the surging US currency while local and overseas stock markets also have taken a battering.

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