The Australian dollar is lower and facing headwinds in coming days.

At 0700 AEST on Friday, the currency was trading at 74.64 US cents, down from 75.00 cents on Thursday.

BK Asset Management managing director of FX strategy Kathy Lien said the Aussie has managed to stay above 74.50 since the Reserve Bank cut rates on Tuesday, but the currency still faced downside risks in coming days.

“The pullback in commodity prices and slower growth in China should keep the commodity currencies under pressure,” she said.

“If 74.50 US cents breaks in the Australian dollar (it’s the 38.2 per cent fib of this year’s rally), the next stop of the Aussie will be 73.30 cents.”

The main local risk event for the currency on Friday are the Reserve Bank’s Statement on Monetary Policy.

The release of the US non-farm payrolls report for April on Friday night (AEST) also presents a risk.

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