The Australian dollar nudged lower against the US currency on Wednesday, consolidating below 81 cents as investors cautiously awaited testimony from the US central bank chief on the health of the world's biggest economy.
Analysts said the local currency, which rose to a fresh 10-year high of $0.8109 on Tuesday, should find support on dips to $0.8050. Underpinning the Aussie is speculation Australia's central bank might raise interest rates as early as next week.
In the United States investors are increasingly betting that the Federal Reserve might cut rates to help stimulate the economy, particularly after recent soft economic reports. At 9:43 am (2343 GMT) the Aussie dollar was quoted at $0.8076/80 compared with $0.8089/92 here late on Tuesday, according to Reuters data. Its range was $0.8075 to $0.8082.
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