The Australian dollar is trading slightly higher as the weaker greenback is offset by lower iron ore prices and dovish comments from the Reserve Bank of Australia.

At 0640 AEST on Wednesday, the Australian dollar was at 75.60 US cents, up slightly from 75.55 cents on Tuesday.

National Australia Bank senior economist Tapas Strickland said the main driver of the Aussie’s rise was weakness in the greenback amid uncertainty over US President Donald Trump’s planned fiscal reforms.

Meanwhile, he said the dovish Reserve Bank of Australia meeting minutes, released Tuesday, and lower iron ore prices were weighing on the Aussie.

The local currency is lower against the Japanese yen and the euro.

AAP

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