Aust dollar slips in early trade

Local currency weakens as investors' fears over US budget deadline intensify.

The Australian dollar is lower as currency traders get increasingly nervous over the looming deadline for the US to reach a budget compromise to raise its borrowing limit.

At 0630 AEST, the local unit was trading at 93.56 US cents, down from 93.89 cents on Thursday.

Failure to raise the borrowing limit could force parts of the US government to be shut down, and Treasury Secretary Jack Lew said the debt ceiling would be reached no later than October 17.