The Australian dollar is slightly lower, weighed down by firming expectations of a US interest rate rise in December.

At 0700 AEDT on Thursday, the currency was trading at 70.58 US cents, down from 70.64 cents on Wednesday.

Financial markets expect that the Federal Reserve will raise the Federal Funds Rate for the first time in nine years after the unemployment rate fell to a seven-year low.

David de Garis, senior economist, NAB, said the Australian dollar managed to hold its ground despite the release of some sluggish Chinese economic data on Wednesday.

“The Australian dollar has continued to trade in familiar territory, opening this morning towards the higher end of its recent ranges, not hurt by yesterday’s Chinese trio of activity data suggesting growth of Australia’s largest trading partner has not stepped down in net terms in October,” he said.

“Industrial production growth was a tenth softer. However, retail sales growth was a tenth higher, a little more evidence of China’s economic transition to greater reliance on consumption.”

De Garis said a mixed performance by commodities prices overnight also helped the Australian currency stay within its recent ranges.

He said all eyes on Thursday will be focused on the release of Australian employment figures for October.

AAP

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