Aust dollar slips in early trade

Local currency weakens as United States grapples with budget deadlock.

The Australian dollar is lower as the United States Congress struggled to come to an agreement on passing budget legislation.

At 0630 AEST, the local unit was trading at 93.20 US cents, down from 93.61 cents on Friday.

On Sunday, the US House of Representatives approved a Republican measure that would avoid a looming government shutdown but delays President Barack Obama's health care law for one year.

The measure now heads back to the Senate and assures a stalemate with Majority Leader Harry Reid saying he will not pass legislation that defunds the president's healthcare plan.

The measure also funds government at current levels until December 15, giving legislators time to thrash out a broader budget agreement.

The White House and the US Congress need to pass short-term budget legislation before the fiscal year ends at midnight on Monday, US time.

Failure to reach an agreement could force parts of the US government to be shut down.

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