Australian dollar edges lower

The Australian dollar dipped against a broadly stronger US dollar on Monday, but found support from speculation Australia's central bank will lift interest rates next month and firmer gold prices.
Investors, with no major local directional cues this week, will focus on offshore data and events, although analysts said last week's hawkish comments by Australia's new central bank governor that strong jobs data were likely to provide support.
"That should be enough to grind the Aussie higher," said Richard Grace, senior currency strategist at Commonwealth Bank of Australia. "The biggest difficulty it has in front of it is a very strong US dollar outlook. That's a bit of headwind."
The Aussie dollar was quoted at $0.7500/02 compared with $0.7508/13 here late on Friday, according to Reuters data. It ranged from $0.7499 to $0.7510.
Gold gained in Asian trade, with spot gold trading at $591.60/592.60 an ounce versus $588.80/589.80 late in New York, while Shanghai copper futures edged down slightly.
Investors have been worried about the risks of a sharp slowdown in the US triggering a global downturn, and denting demand for Australia's plentiful resources. But a raft of recent US economic reports, particularly consumer data on Friday, has boosted the view that the US economy was performing better than many had thought. "The US economy is very resilient," said Grace.
For example, in the previous US housing downturn in 1991 both unemployment and interest rates were higher and there were less attractive options to refinance mortgages, he added.
"Yes there has been a slowdown," said Mark Tierney, international strategist at Macquarie Bank. "But so far, it looks very tame. If this remains the case until the end of the year, the bear case for the US economy will be in tatters."
The US dollar held near a 10-month peak against the yen after upbeat US consumer data further dampened talk the Federal Reserve would cut rates early next year.
Fed officials are out in force on Monday, with Chairman Ben Bernanke heading a raft of speakers.
A Reuters survey found a majority of economists now expect the Reserve Bank of Australia to lift rates by 25 basis points to 6.25 percent in November after consumer price data this month. The Aussie/yen was slightly higher at 89.69/79 yen compared 89.58/68 yen here late on Friday, but still below a 10-month high of 89.94 yen touched on Friday in offshore trade.